Last Updated on Dec 29, 2023 by Harshit Singh
The airline industry is bouncing back with a surge in travellers, resulting in a rise in valuation of aviation stocks. India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), stated that India’s domestic air passenger traffic grew to 1.20 cr. in 2023. The government’s support for the industry and the increasing demand for air travel have led to a significant growth of the airline stocks of various aviation businesses in India. This article presents a list of the best aviation stocks in NSE, providing insights into the industry’s possibilities.
Table of Contents
Best Aviation Stocks in India
| Stock Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1M Return (%) | Net Income (Q) | 5Y Historical Revenue Growth (%) |
| Spicejet Ltd | Airlines | 1,907.85 | 60.05 | -1.26 | 31.21 | -448.99 | 4.64 |
| Global Vectra Helicorp Ltd | Airlines | 175.00 | 131.15 | -10.53 | 16.99 | -6.82 | 1.91 |
| Interglobe Aviation Ltd | Airlines | 1,12,966.14 | 2,967.10 | -369.44 | 10.31 | 188.94 | 18.45 |
| Jet Airways (India) Ltd | Airlines | 644.67 | 57.60 | -0.64 | 4.51 | -50.65 | -70.31 |
| GVK Power & Infrastructure Ltd | Airports | 1,579.21 | 10.05 | 0.65 | -1.96 | 61.90 | 2.18 |
Note: The data is from 29th December 2023, and it is sorted using Tickertape Stock Screener. To get the list of aviation stocks listed on NSE, the below-listed filters are applied –
- Sector > Industrials > Airlines and Airports
- 1M Return – Sort from highest to lowest
Spicejet Ltd
SpiceJet Ltd. primarily emphasises providing air transportation services for passengers and freight. As the second largest player in the domestic aviation sector after Interglobe Aviation Ltd (Indigo), the company holds a significant market share of approximately 14.93%. It is also the leading operator of freight in India.
Global Ventra Helicorp Ltd
Global Vectra Helicorp Ltd. centres its attention on offering helicopter charter services for offshore transportation as a means of serving its customers in the oil and gas exploration and production industry in India. Furthermore, it also provides helicopter transportation charter services for use on land. The company is showing good signs of profitability and recorded a 6.3 on profitability score. The only point of concern is that the company has moderate numbers of red flags which can dampen the mood around its growth.
Interglobe Aviation Ltd
Interglobe Aviation Ltd. owns and operates Indigo, which stands as India’s most extensive passenger airline and the only low-cost carrier in the country. With a presence in 86 locations, including 24 foreign destinations, Indigo offers a straightforward, unbundled service to its passengers. The company’s sole brand promises to provide affordable fares, punctual flights, and courteous, hassle-free service. Indigo began its operations in August of 2006 with a single aircraft, and it has since expanded its fleet to include 262 aircraft.
Indigo is expected to achieve a revenue growth rate of 17% in the upcoming year, surpassing the CAGR of revenue over the past three years, which stood at 13.20%. Furthermore, the expected earnings growth rate of 2,178.63% for the next year outperforms the CAGR of earnings growth over the previous three years, which was 0%.
Jet Airways (India) Ltd
Jet Airways (India) Limited is a public limited company that operates in India. The company commenced its business operations on 5th May 1993, with a focus on carrying passengers and cargo and providing related services. These services are primarily offered through scheduled air transportation. With a market capitalisation of Rs. 644.67 cr., Jet Airways is the third largest airline in India.
GVK Power & Infrastructure Ltd
GVK Power & Infrastructure Ltd’s primary objective is to cater to power plant proprietors, airport owners, and infrastructure corporations by providing them with operations and maintenance services, personnel, consultancy services, and other incidental service offerings. The company has demonstrated promising levels of profitability and efficiency, scoring 8.2 on the profitability parameter. The company has a moderate number of red flags, therefore, do your due diligence before investing in any stock.
Growth Projection
The Indian government is currently concentrating on promoting the country’s aviation sector on a wider scale and taking active measures towards achieving the same. As a result, India has emerged as the third-largest domestic aviation market, experiencing rapid growth and surging towards the top.
Given the sector’s significant contribution to the country’s overall GDP, the aviation industry in India is a crucial contributor to the growth of the nation’s economy. In addition, it plays a critical role in connecting India with the rest of the world. Therefore, the aviation industry will remain a crucial player in the foreseeable future.
Potential risks with airline companies in India
Potential risk factors to consider before investing in aviation stocks:
- Dependence on government regulations and unpredictable situations, such as the COVID-19 pandemic.
- Dependence on geopolitical connections and conditions, which can impact the demand and supply chain.
- Risks associated with fuel prices, as higher prices can lead to fewer people choosing air travel, affecting stock prices.
- Recovery from losses incurred during the pandemic lockdown period.
- Decrease in business travel due to the adoption of online meetings, impacting the overall number of people travelling for business purposes.
Conclusion
India’s aviation sector has seen remarkable growth with increased speed and capacity to carry passengers, and the government is investing in airport infrastructure. India is among the top 10 aviation markets, serving 83 mn domestic travellers annually. If you’re considering exploring aviation stocks, it is important to consider risks such as dependence on government regulations and geopolitical connections, fuel prices, recovery from pandemic losses, and decreased business travel. Despite these risks, the aviation sector has significant potential for growth and contribution to the Indian economy.
Moreover, with Tickertape pro, you can ascertain the valuation, profitability, red flags, among other key parameters available under ‘Scorecard’, to evaluate aviation stocks. The advanced set of features are designed to help investors evaluate aviation stocks effectively and make informed decisions.
FAQs
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As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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