Since mid-February, shares of IndiGo parent InterGlobe Aviation Ltd, Jet Airways (India) Ltd and SpiceJet Ltd have risen between 28% and 68%. Interestingly, the 28% appreciation in IndiGo’s stock pales in comparison with SpiceJet’s spectacular 68% gain during this period. While Jet Airways shares have risen sharply since mid-February, they had underperformed by a huge margin prior to that. Despite the sharp rally, SpiceJet shares still trade at a meaningful discount to those of IndiGo. In terms of EV/Ebitda, SpiceJet trades at 8.3 times, lower than Indigo’s 11.8 times valuation.

Source: Mint March 28, 2017 02:03 UTC