Jet Airways can go to 900 levels on stake sale: Rajen Shah, Angel Broking

In a chat with ET Now, Rajen Shah, Chief Investment Officer, Angel Broking, shares his views on Jet Airways Ltd.

ET Now: Right. What is your call on Jet Airways?

Rajen Shah: We like Jet Airways. I am very bullish on the aviation space. These companies are ailing into huge losses, have a lot of losses accumulated on the balance sheet. However, Jet Airways controls about 20% of India's aviation market. We are getting this company for less than $1 billion and if any foreign player wants to enter India, this could be one of the airlines it would like to have a stake in.

Mr Naresh Goyal holds about 80% stake. Equity is very low at about Rs 86 crore and we have a June 2013 deadline whereby the promoters need to bring down their holdings to 75%. Therefore, QIP is very much possible or a strategic stake sale from foreign peer is very likely. If that happens, the stock can go beyond 700. I have a target of anywhere between Rs 700 to Rs 900 for the stock over the next 12 months.