Prefer InterGlobe Aviation among aviation companies: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his views on Aviation.

ET Now: Just one quick view on aviation, would you be taking money off in case of IndiGo or you are still long?

Mayuresh Joshi: No, it still remains a hold. Looking at how the airline has been placed compared to its peers, it is profitable; second, I think the operating costs are extremely low.

You look at the age of their fleet, it is around 3.2-3.4 years compared to Spice and Jet Airways whose fleet age is much higher. Again, I think the kind of operating expense or the lower operating expense that it probably carries on in operations, sale and leaseback operations, I think it clearly augurs well for a stock like IndiGo.

Add to that, I think ATF prices have been extremely low, and are expected to stay low. So it should benefit, the aviation industry as a whole but I think IndiGo should have greater amount of synergies coming through with the kind of cost optimisation which it has got. The premiumisation of the stock should continue, valuations might have been little bit stretched, but investors holding on to stock should continue to hold out to IndiGo.