ICICIdirect has maintained 'Hold' on Jet Airways with price target of Rs 283 as against current market price (CMP) of Rs 259 in its report.
Commenting on the investment rationale, the broking firm said, "Jet Airways consolidated revenues for Q2FY15 grew 10.5% YoY. While standalone domestic revenue growth remain subdued (up 3% YoY), international segment saw a robust revenue growth of 20% YoY.
Operating loss for the quarter came in at Rs 822 million on a consolidated basis, lower than our estimated operating loss of Rs 1231 million due to the better performance of international operations along with a reduction in fuel (down 1.2% YoY) and other operating costs (down 8.6% YoY).
Further, with exceptional income of Rs 3.05 billion from a slump sale of the frequent flier programme, the net loss of the company came down significantly on a YoY basis.
We expect the share of the international segment to get enhanced to over 60% in the next two or three years with Etihad coming on board through acquisition of a 24% stake in Jet Airways. Etihad has already been given regulatory approval to code share on 43 additional routes with Jet Airways bringing total 71 services under code share agreement.
We expect the share of the international segment to get enhanced to over 60% in the next two or three years with Etihad coming on board through acquisition of a 24% stake in Jet Airways. Etihad has already been given regulatory approval to code share on 43 additional routes with Jet Airways bringing total 71 services under code share agreement."
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