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View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 224 31.95%
26 - 50% -- I have a few stocks. 313 44.65%
51 - 75% -- I'm an active trader. 114 16.26%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.13%
Voters: 701. You may not vote on this poll

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Old 26th October 2015, 08:42   #3061
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Default Re: Do you play the stock market

Anyone investing in Indigo?

I'm planning to. Hefty yes, but a great airline with a solid track record, happy customers and profitability.
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Old 26th October 2015, 09:07   #3062
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Default Re: Do you play the stock market

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Anyone investing in Indigo?

I'm planning to. Hefty yes, but a great airline with a solid track record, happy customers and profitability.
Same here, just worried a bit when seeing how Jet airways tumbled down just after launch. Hope it wont repeat in Indigos case.
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Old 26th October 2015, 10:26   #3063
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Default Re: Do you play the stock market

All over the world airline stocks are the worst underperformers as a sector,but indigo with a huge domestic share may find some value with investors, having a horizon of 3-5 years .
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Old 26th October 2015, 11:28   #3064
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Default Re: Do you play the stock market

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Anyone investing in Indigo?

I'm planning to. Hefty yes, but a great airline with a solid track record, happy customers and profitability.
After losing more than half my money in the IPO of Jet Airways, I wouldn't put my money in any airline stock.

An airline operator in India is like a bus operator, except that they deal with vagaries of various governments that result in elephant sized losses. Unlike a bus operator, most airline companies do not own anything, many times not even their aircraft, and their employees go jumping from airline to airline and more than that, their customers are also not loyal and will leave in droves if someone gives ₹100 off.

I wonder how many investors carefully go through the financial statements in a Red Herring prospectus and instead rely on their own experiences with that brand. Once upon a time, I too did that but with age I have learned to rely on the bean counters who run mutual funds.
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Old 26th October 2015, 12:21   #3065
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Default Re: Do you play the stock market

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Anyone investing in Indigo?

I'm planning to. Hefty yes, but a great airline with a solid track record, happy customers and profitability.
I am still contemplating whether to go or not. One important factor which bothers me is their net asset value which has slipped to negative Rs 139 crores at the end of June. It may be due to interim dividend etc but still for me it looks to be high risk bet.
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Old 26th October 2015, 12:38   #3066
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Default Re: Do you play the stock market

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I am still contemplating whether to go or not. One important factor which bothers me is their net asset value which has slipped to negative Rs 139 crores at the end of June. It may be due to interim dividend etc but still for me it looks to be high risk bet.
Good point. Promoters have skimmed off cash from business through hefty dividend. This act alone shows how management is towards small investors.
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Old 26th October 2015, 12:56   #3067
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An airline operator in India is like a bus operator, except that they deal with vagaries of various governments that result in elephant sized losses. Unlike a bus operator, most airline companies do not own anything, many times not even their aircraft, and their employees go jumping from airline to airline and more than that, their customers are also not loyal and will leave in droves if someone gives ₹100 off.

I wonder how many investors carefully go through the financial statements in a Red Herring prospectus and instead rely on their own experiences with that brand. Once upon a time, I too did that but with age I have learned to rely on the bean counters who run mutual funds.
+1. It may turn out to be an exception than the norm but Mr Market will always be skeptical on giving it a favorable rating. Also, record low level of crude prices may not last long. For me its a strictly no-go. I would rather put that money in a good mid-cap fund.
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Old 27th October 2015, 00:22   #3068
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Default Re: Do you play the stock market

After a blockbuster with syngene, i am sitting out on indigo.. they have a great strategy on a lot of fronts. For example, they have not intentionally invested in loyalty/corporate programmes because someone has to spend time, money and energy on the customers. Rather they focused on efficiencies.

However, I am not convinced about their financials, a high dividend, negative net worth etc. The lack of clarity in that is the only reason I am skipping this IPO.
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Old 27th October 2015, 20:12   #3069
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Default Re: Do you play the stock market

GTO,
Glamours sector, but i havent seen any airline stock (local/global) that created shareholder value. Buy what you see and like (peter lynch) is only for starting initial investigation. I haven't checked indigo financials in detail. But i guess its no different from its peers. ( most of the recent quarter seem to be -ve EPS).

If one is a trader, then its a different thing. Since there is a lot of hype around this ( and also considering that the broader market sentiment is bullish), one can expect some listing gains. But think about this. These days either you dont allocation at all or it will be a very small quantity. Even if it gives very good listing gains, what difference will it make to one's overall net worth?


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Anyone investing in Indigo?

I'm planning to. Hefty yes, but a great airline with a solid track record, happy customers and profitability.
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Old 28th October 2015, 23:14   #3070
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Default Re: Do you play the stock market

Hi everybody.
Saw a couple of hours back that High Networth Individuals and the retail participants are missing...maybe they subscribe tomorrow.
QIB is oversubscribed AFAIR 4.8 times.
2005 Jet Airways sold their shares at 1100. After 10 years and in spite of low oil prices it is nowhere near that price.
As somebody mentioned the promoters have voted themselves a hefty dividend which has not gone down well with the analysts
Regards
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Old 29th October 2015, 11:04   #3071
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Default Re: Do you play the stock market

Even I read that the company announced a big dividend which made the net worth of the company negative. I have not seen the company financials but if this is true, I am not sure this is a good move. I have not seen any company (in my short investing career) announcing such a big dividend so that the equity becomes negative. Probably the company is too confident that the profits going forward are going to be so good that it will make up for the negative equity.

Can we view this dividend as a move by the promoters to take their money off the table? This is not a friendly move for the minority shareholders right? Just wanted to check from people here whether I am reading the situation right? We have the promoters making such moves and on the other hand, the IPO being oversubscribed.

Any idea about the date when the shares will start trading?
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Old 29th October 2015, 16:22   #3072
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Default Re: Do you play the stock market

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Originally Posted by GTO View Post
Anyone investing in Indigo?

I'm planning to. Hefty yes, but a great airline with a solid track record, happy customers and profitability.
Not me ! Would invest my money in stocks of companies which have a more profitable business and a higher net margin. Airlines by the very nature of their business is a high investment, low margin business.
This is reflected worldwide with very few airlines being profitable (SouthWest Airlines)
Further in our country the airlines industry is highly regulated not allowing the market forces to align the business.
Will stay away from Indigo or any other airlines.
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Old 30th October 2015, 22:36   #3073
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Default Re: Do you play the stock market

Billionaire investor Rakesh Jhunjhunwala just bought 1% of Jet .

Why ?

Airlines are the worst businesses on earth, little to no margins, always exposed to fuel prices (and none barely hedge their exposure to the fluctuations) and absolutely little to zero competitive advantage.

Maybe a couple will do well with fuel prices low but it's a horrible sector if you see the financial statements, maybe the only thing sadder is infra/EPC and sugar refining.

http://www.moneycontrol.com/news/bus...s_3889941.html

Maybe its a short term trading strategy ? I don't think anyone is investing investing in airlines, maybe they're all short term trades.

I really wonder what the mania about airlines is all about, i've been seeing increased interest and coverage of this sector for a while now.

Last edited by D33-PAC : 30th October 2015 at 22:44.
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Old 31st October 2015, 00:26   #3074
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Default Re: Do you play the stock market

Can someone please share his views about the medium term outlook of Dish TV and EID Parry as I seriously wish to invest in the two.

Also recommend me any ONE stock apart from these two with reasonable chance of appreciation in the short to medium term in your opinion.

I am planning to invest in stocks after a very long gap, that's why the queries. I have some investment in MFs and just want to try out one or maximum two stocks.
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Old 31st October 2015, 00:39   #3075
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Also recommend me any ONE stock apart from these two with reasonable chance of appreciation in the short to medium term in your opinion.

Take a look at the pharma sector. Find a company in this area with PE under industry avg, market cap under 1000 cr and proven year on year profitability and youre good to go. You can never go wrong with this sector. I personally have shares in Granules India, I wouldn't recommend it as its kind of expensive (PE is close to industry avg), but I'm just letting you know.
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