Aviation is an interesting space if cost structure comes down: Deven Choksey

ET Now Dec 4, 2012, 10.30AM IST

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on the aviation space.

ET Now: The newsmaker possibly post market hours yesterday and one that will react is Jet Airways with aviation ministry sources saying that they would sell 24% for Rs 1600 crore. What is your call on aviation stocks?

Deven Choksey: This particular news from the aviation ministry means that the players have probably got some signals that going forward they are determined to bring down the cost structure in the aviation business. If that happens, the investment in the aviation business can become attractive. Most importantly, some companies like SpiceJet and Indigo which is coming up with IPO in the next quarter - they could be an interesting place.

The sector could possibly get re-rated. Not sure whether to buy immediately into the listed players like Jet or Spice. However, on a momentum basis one could get some amount of upside for the near term given the positivity of this news. If they bring down the cost structure. only then can Etihad and other players would be interested in buying into the Indian aviation busines.

9.06 % 1.60
Vol: 50184 shares traded