There has been lot of news about Kingfisher airlines in last few weeks. Or rather we can say that there is lot of negative news about Kingfisher airlines. Kingfisher airline has been going through lot of turmoil and at a moment, there were speculation of this airline going down. Kingfisher airlines which are considered as one of the best airlines in India is currently facing severe fund crunch and debt are creating huge problems for the company. They have to cancel many flights to sustain themselves.
There were speculations that airline was close to getting bankrupt and company was seeking for bailouts from the government. Though air was cleared by none other than Vijay Mallya. He also told that company is not going to bankrupt and it will bounce back. As per the news rounding in market, company is close to finalizing deals to generate funds.
Right now Kingfisher is going through the same phase what Satyam Technology went in 2008. Like in case of Satyam, Kingfisher airline’s stock is beaten badly and they are close to their all time lows. Stock is currently trading at 24.05 at NSE and it’s 52 week high is 79.25 at NSE. It shows the margin available in this stock to rise.
As we know stock markets are dominated by sentiments in short term. In case of Satyam, stock went below 20 and then it rose to over 100 in the six to eight months time. So, as we know that Kingfisher airline which is currently going through tough times is having potential to bounce back. And it is a very good stock to invest in it at current levels. There will be some positive news about it and that will act as a trigger for short term rise even if there are no structural changes in the market scenario for airline companies.
Stock is bound to rise sharply in the event of positive news about it and it is better to invest in it before that positive news so that you can gain on that entire rise rather entering after stock has raised upto a level. It worth taking that much of risk.