SpiceJet more of a trading than an investment opportunity: Ambareesh Baliga

In a chat with ET Now, market expert Ambareesh Baliga shares his view on SpiceJet’s June quarter results.

ET Now: What’s your take on SpiceJet’s quarterly numbers? Aviation is in a sector on which most people would be skeptical. But SpiceJet’s numbers are not too numbers. The top line has grown much better and for the second consecutive quarter in a row. The company is delivering profits and, this time, the profits are much higher than what they reported in the corresponding quarter of last year.

Ambareesh Baliga: That is true and it is largely due to a decline in operating expenses, thanks to a fall in oil prices. Oil has been soft throughout, but we should remember that this is going to be the case across and because of which, there would be increased competition. I really do not know whether this sort of margins can really last too long for the airline space as a whole. History has shown that airlines never really make huge profits. So this (June quarter numbers) could be temporary. But then yes, it is good for SpiceJet. At least the stock will bounce back decently well. That said, any bounce would be more of trading bet than a investment bet at this point of time.