A technical and circumstantial review of Ravi EQS.
Jet Airways is big news and their flights have been reduced over the last 6 months continuously due to their debit settlement issues. Unpaid vendor bills and unpaid wages to your employees.
Jet airways is not the right choice now; your debt is the reason behind. its asset evaluation dropped to -1,946.88cr. Many of their flights are down due to debits. the number of flights that have stopped flying continues to increase. At the same time, the condition of the flights is also not correct.
Recently, Vijay Malya, the founder of Kingfisher Airlines, announced and offered help, but he cannot pay off the debt that the airlines now promise. The total debt is around 5,295.12 Cr.
His net worth is now negative at -7,242Cr. Unpaid employee salary, fear of job stability and attrition rate is now 70% on jet airlines. However, the estimated Market Capital to date is 3,116.54.
In efforts to save the company, the BSE board also approved the issuance of 11.4 crore of equity shares to lenders following the conversion of Re 1 of outstanding debt. Lenders will inject up to Rs 1,500 crore through debt instruments.
The board also approved the constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company.
The Jet airline will use the funds raised to settle outstanding debts with lessors, suppliers, creditors and employees, and planned to redeploy several of its aircraft on the ground back to work.
On the other hand, all these activities may take a decent amount of time, board decisions are pending until April 30, 2019. In the same phase, Indian Prime Minister elections will be under pressure, government activities may speed up or slow down trading activities, in In the past, I’ve seen clever changes that give a lot of stock go down. This is due to the fall that I open interest.
Although the funds are accumulating full 4th quarter earnings will be nil or negative due to the drama going on now barely earned in the time between 3rd and 4th quarter results this will be a drought for sellers.
However, the buying opportunity is yet to come, once the election is over, the impacts to Jet Airways’ fourth quarter results will also be over and the decisions of the board of directors will also be finalized along with the progress and plans of debt settlement. It can be seen investing during June and July at Jet airways.
If the elections turned out to be positive, then we can definitely see some short covering. Whatever the results, don’t look long term with Jet Airways at this point.
Jet Airways as of March 26, 2019 trading at Rs275. Deal investment range seems to be 250 to 310Rs. A short-term exit level for now is Rs290.
