Jet Airways share price surges over 3% in 2 straight sessions! Should you buy? What expert said
Debt laden domestic airliner, Jet Airways share price surged 3.17% in Tuesday's intraday trading session, carrying forward the extended rally of previous few trading days.
Debt laden domestic airliner, Jet Airways share price surged 3.17% in Tuesday's intraday trading session, carrying forward the extended rally of previous few trading days. The shares of the cash strapped company are witnessing a buying trend with a 3.17% price hike on BSE, while it generatted a 1.83% share price jump on NSE. The airline posted a jump of 5% on July 1 after reports indicated that Hinduja Group and Etihad Airways consortium is showing interest in buying the insolvent airlines.
The shares opened at a day high of Rs 74.45 on Monday on BSE, while the all time low of the share was as low as Rs 27 just few days back. The stock of Jet Airways has plunged 75 per cent in the last three months due to suspension of operations amid a cash crunch.
Research Head, Joindre Capital Services, Avinash Gorakshakar told Zee Business Online, ''The company has already shut down its business and is dragged to NCLT by SBI, no investor would be keen to buy equity in current scenario. No institution would be investing in the shares right now, which clearly states the condition of the company. The investors should stay away from the stock, as there is no scope of any opportunity at present.''
Jet Airways was dragged to National Company Law Tribunal (NCLT) over its default payment case and proceedings for the same have already started. While the insolvency case still awaits the revival or recovery of millions of debt pending with the company. The airline owes Rs 8,500 crore in total to banks and around Rs 25,000 crore in arrears to vendors, lessors and employees.
However the situation is yet to get improved for the bankrupt airlines as there could be several companies in race to bid for the stake purchase. While, Etihad holds a 24 percent stake in Jet Airways and based on exchange filings is not classified as part of the promoter group of the airline and falls in the public shareholder category.
On the other hand, experts are advising to stay away from any kind of trade as there could be heavy trading and hedging going on with the scrip on Dalal Street.