Jet Air touches 52-week low of Rs 225.10

MUMBAI: Jet Airways shares touched a 52-week low of Rs 225.10 in early trade on Thursday. At 10:39 am, the stock had recovered slightly to Rs 237.90, but was still down 11.05 per cent from the previous close.

Analysts at domestic brokerage houses point out that Jet Airways��� recent strategic alliance with Kingfisher Airlines, to enhance efficiencies would provide a limited opportunity of reducing costs considering the non-negotiability of fuel price (fuel accounts for nearly 55% of total revenues). Jet's topline was Rs 10,245 crore in FY 08.

Nevertheless, the biggest advantage of the tie-up is 'non-compete' covenant of the agreement, add analysts.

Analysts are waiting for Jet to report its Q2 FY 09 results, before making any changes in their earnings forecast. Jet is expected to report a negative EPS of Rs 154.6 for FY 09.