Hi @BALASAHEB: Thanks for starting the thread. Based on the little info I have read:
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Indigo gave out a hefty interim dividend. Is it to strip the money off the company before going IPO? Management integrity in question (there will soon be minority shareholders).
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It is doing way better on most metrics. But load factor of the other airlines being higher might be a tell-tale sign that the others might take a hit on profitability to garner market share (a la Flipkart). And we know such measures hit businesses where the competition is fierce.
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A negative net worth compounded by #1 might not be very palatable to the value investor.
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The offer price has been raised from Rs 400 to Rs 700. Don’t know when the Rs 400 was decided on but have the business fundamentals improved so drastically to warrant a doubling of offer price?
I am also learning the fine art of value investing, so I await what my smarter friends have to say.
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