Inter Globe Aviation Indigo Priced to Perfection?

I'm not offended, kharb. Just that we've to come to a conclusion. I'm glad if my inputs were of any help. Don't put me on a pedestal - "knowledgeable members like you" I'm just another guy.

Q3 FY 16
Revenues ₹4407.4 crore
Net Profit ₹653.7 crore
EBITDAR ₹1673 crore
EBITDAR margin 38.9%
Passenger Load Factor 84.6%

moneycontrol

Thank you for flying IndiGo. Wish you a pleasant stay.

@bholu couldn't have been more right, down 10% post results, that hurt my ego

 

Profit up just 23% ,revenue up just 12%.That is at the highest point of favourable environment.Extremly high Price to Book 57.I don't know stock is ruling at such high price due to fundamentals or just Temorarary Hyped play of Strong Hands to be Melt Down Soon and a Over Riped Stock, A Sitting Duck to be a Perfect Short.?.I dont know .Other crude play like Even paints compnay ASIAN paints has done comparitivly higher profit % and can also withstand reversal of crude with passing of cost due to pricing power. Are airlines better play on crude or those stocks which can withstand pressure of crude reversal and hardening of USD.Realy I don't know the model of airlines.Just trying to learn

 

Does Big Investers dont panic ?.Interglobe is test case.Is panic bad then taking a big hit ? I dont know.Can it go down below IPO price?. I dont know .But those who shorted yesterday, for them ,Was it almost a Sitting Duck to be hunted by even first day invester.? I don't know.I am just trying to understand the business model if it can continusly support stock price at inflated level for long.?What is opinion of Dear members ,as I want to understand the model.

 

@ Bombayboy- whai is your opinion now, does strong hand don't panic

 

In my view - NO

Only the fickle and those who dont know their risk apetitie and investment goals panic.

Apologies for butting into a bilateral question

 

Stock is now below IPO price.