Last Updated on Dec 6, 2024 by Anjali Chourasiya
India’s aviation industry is experiencing rapid growth, driven by rising air travel demand and government support. In 2024, the sector is rebounding strongly, with domestic passenger traffic reaching 1.31 crore in July, an 8.6% increase from the previous year. Indian airlines flew a record 79.3 million passengers in the first half of the year, with IndiGo holding a dominant 62% market share. Despite challenges like supply chain disruptions and engine failures, the industry shows immense potential. This article highlights the top aviation stocks on the NSE and explores key opportunities and challenges in 2024.
Table of Contents
What Are Aviation Stocks in India?
Aviation stocks in India include shares of companies involved in the airline industry, airport operations, and related services. Prominent airline companies like IndiGo, SpiceJet, and Air India are key players in the Indian market. Apart from these, you may also come across airport stocks such as GMR and Adani Enterprises, which manage several major airports in the country.
These stocks are impacted by various factors, including air traffic, fuel prices, and government regulations. With the aviation industry in India growing, investors are keeping a close eye on airline stocks and airport-related companies listed in NSE and BSE.
Best Aviation Stocks in India
| Name | Sub-Category | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1M Return (%) | Net Income (Rs. in cr.) | 5Y Historical Revenue Growth (%) |
| Interglobe Aviation Ltd | Airlines | 168,885.43 | 4,370.85 | 20.67 | 8.77 | 8,172.46 | 19.02 |
| Spicejet Ltd | Airlines | 7,895.18 | 61.60 | -18.67 | -0.78 | -422.82 | -1.66 |
| GVK Power & Infrastructure Ltd | Airports | 814.87 | 5.16 | 39.94 | -3.02 | 20.40 | -23.43 |
| Jet Airways (India) Ltd | Airlines | 388.05 | 34.16 | -0.39 | -7.22 | -1,002.06 | -70.31 |
| Global Vectra Helicorp Ltd | Airlines | 403.20 | 288.00 | 336.00 | -10.44 | 1.20 | 1.36 |
Note: The data is from 5th December 2024, 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, Airports
- 1M Return: Sort from highest to lowest
🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.
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Overview of the Best Airline Stocks in India
InterGlobe Aviation Ltd
InterGlobe Aviation Ltd, operating under the brand name IndiGo, was founded in 2006 by Rahul Bhatia and Rakesh Gangwal. It is one of the largest airline companies in India, offering domestic and international air travel services. IndiGo is recognised for its cost-efficient operations and extensive network coverage.
As of 5th December 2024, InterGlobe Aviation Ltd has a market capitalisation of Rs. 1,68,885.43 cr. and a closing price of Rs. 4,370.85. The company has a PE ratio of 20.67 and has delivered a 1-month return of 8.77%. Its net income stands at Rs. 8,172.46 cr., and it has achieved a 5-year historical revenue growth rate of 19.02%.
SpiceJet Ltd
SpiceJet Ltd, founded in 2005, is a low-cost carrier offering air travel services within India and internationally. The company is known for affordable ticketing options and operating flights to underserved regions.
As of 5th December 2024, SpiceJet Ltd has a market capitalisation of Rs. 7,895.18 cr. and a closing price of Rs. 61.60. The company currently has a negative PE ratio of -18.67, reflecting financial challenges. Its 1-month return is -0.78%, with a net income of -Rs. 422.82 cr. and a 5-year historical revenue growth rate of -1.66%.
GVK Power & Infrastructure Ltd
GVK Power & Infrastructure Ltd, founded in 1994, focuses on developing and managing infrastructure projects, including airports, energy, and transportation. The company is known for its involvement in operating key airports in India.
As of 5th December 2024, GVK Power & Infrastructure Ltd has a market capitalisation of Rs. 814.87 cr. and a closing price of Rs. 5.16. The company’s PE ratio is 39.94, with a 1-month return of -3.02%. Its net income stands at Rs. 20.40 cr., while its 5-year historical revenue growth rate is -23.43%.
Jet Airways (India) Ltd
Jet Airways (India) Ltd was established in 1993 and was once one of India’s largest airline operators, offering domestic and international air travel services. It is currently undergoing restructuring efforts to revive operations.
As of 5th December 2024, Jet Airways (India) Ltd has a market capitalisation of Rs. 388.05 cr. and a closing price of Rs. 34.16. The company has a negative PE ratio of -0.39 and a 1-month return of -7.22%. Its net income is -Rs. 1,002.06 cr., and its 5-year historical revenue growth rate is -70.31%.
Global Vectra Helicorp Ltd
Global Vectra Helicorp Ltd, established in 1997, is a leading provider of offshore helicopter services in India. The company primarily supports the oil and gas industry with its fleet of specialised helicopters.
As of 5th December 2024, Global Vectra Helicorp Ltd has a market capitalisation of Rs. 403.20 cr. and a closing price of Rs. 288.00. It has an exceptionally high PE ratio of 336.00, with a 1-month return of -10.44%. The net income reported is Rs. 1.20 cr., and the 5-year historical revenue growth rate is 1.36%.
How to Invest in Top Airlines in India?
To invest in the best Indian airline companies, follow these steps.
Step 1: Launch Tickertape Stock Screener.
Step 2: Go to ‘Sectors’ and Select > Industrials > Airlines and Airports
Step 3: Add over 200 filters to narrow down the Best indian airlines stocks in India.
You can choose fundamental filters like ROE, Net Profit Margin, or Debt-to-Equity Ratio. You can also select technical filters like RSI. The selection criteria of filters depend on your preference. While thorough research on list of airlines in India is important, it is worthwhile to consult a professional before investing.
Features of Best Aviation Stocks in India
When looking for the best aviation sector stocks in India, you may notice certain characteristics that make these stocks appealing:
- Market Leadership: Companies like Indigo dominate the Indian market, with a significant share of domestic and international flights. The biggest airline company in India, for instance, often reflects better operational strength due to its market presence. Understanding the dynamics of the Indian airline industry can help in identifying leaders among airline stocks India.
- Solid Financial Position: Financially stable companies, with good cash flow and manageable debt, tend to offer more long-term value. Reviewing their aviation share price, profits, and balance sheet is crucial. Prominent listed aviation companies in India with strong financials are more likely to sustain and grow over time.
- Growth and Expansion Plans: Airlines placing large orders for new aircraft or expanding their routes have a higher growth potential. IndiGo and Air India, part of the list of aviation stocks in India, are examples of companies expanding their fleets. Monitoring the aviation sector companies in India helps assess growth trends and identify the top 10 aviation stocks in India.
- Government Support: The aviation industry benefits from policies like the UDAN scheme, which boosts regional connectivity. Companies aligned with such policies are part of the top 10 aviation companies in India and have stronger growth opportunities. Watching the airline share price of these companies offers insights into how government initiatives impact performance.
- Diverse Opportunities: The aviation sector companies in India encompass various market players, including those focused on cargo and passenger services. Investing in flight share or other assets of aviation companies listed in India provides exposure to a broad industry segment.
Impact of Government Policies on Aviation Sector Stocks in India
The Indian aviation sector has seen significant growth, largely due to supportive government policies aimed at enhancing infrastructure and connectivity. The government’s commitment is evident through initiatives like the Regional Connectivity Scheme (RCS), which aims to make air travel accessible to underserved regions. This scheme has operationalized over 579 routes and developed 85 airports, with a target of reaching 1,000 routes by 2024.
The government’s focus on expanding the aviation market has led to a surge in airline orders, with airlines placing orders for over 900 new aircraft. This expansion is expected to bolster aviation stocks, as increased fleet sizes typically correlate with higher revenue potential[3]. Furthermore, the recent merger between Air India and Vistara, which allows Singapore Airlines to acquire a 25.1% stake in Air India, is anticipated to create a more robust entity in the market, positively impacting stock performance in the sector.
Additionally, the government’s emphasis on sustainability and carbon neutrality is reshaping operational strategies within the industry. Airlines are increasingly investing in modern fleets and greener technologies, which may enhance their long-term viability and attractiveness to investors.
How Top Aviation Stocks in India Perform in Economic Downturns
Historically, aviation stocks in India have shown resilience during economic downturns, although they are not immune to challenges. Airlines like IndiGo and Air India have adapted their strategies by optimizing routes and focusing on cargo operations during periods of reduced passenger demand. For instance, IndiGo’s cargo division is projected to grow by 17% this fiscal year despite broader economic challenges.
The consolidation within the sector, exemplified by the Air India-Vistara merger, may also provide stability during downturns. Mergers often lead to cost efficiencies and enhanced market share, which can buffer against economic fluctuations. Moreover, government policies aimed at enhancing regional connectivity can provide airlines with new growth avenues even when traditional passenger traffic declines.
However, financial challenges remain prevalent. Airlines like SpiceJet have faced legal and financial difficulties that have impacted their stock performance negatively during downturns. The need for ongoing financial support and strategic restructuring is critical for maintaining investor confidence in such scenarios.
Factors to Consider When Investing in Aviation Stocks
Before investing in aviation industry companies, you might want to evaluate:
- Fuel Costs: Since fuel accounts for a major portion of an airline’s operating costs, fluctuations in fuel prices directly affect profitability. Investors often analyse the financials of top aviation companies in India to understand how fuel price changes impact their margins.
- Economic Conditions: The performance of airline companies in India is often tied to economic growth. A slowdown can reduce air traffic demand, impacting revenues. Monitoring the Indian airlines share price and evaluating the indian airlines share price today can provide insights into how economic conditions influence the sector.
- Fleet Efficiency: Airlines with modern, fuel-efficient aircraft may perform better in the long run due to lower operating costs. This factor can significantly influence the valuation of airlines stock India and other listed airline companies in India that focus on fleet upgrades.
- Government Policies: Regulatory changes related to taxes, airport fees, or subsidies can affect the profitability of both airline companies and airport companies in India. Policies supporting the sector can benefit the best aviation company in India, while adverse changes might impact overall performance.
- Competition: The Indian aviation market is highly competitive. Mergers and alliances, like the Air India and Vistara merger, can reshape the competitive landscape and influence stock performance. Investors often analyse the air india market cap and wonder, is Air India listed on NSE? Keeping an eye on the air india share price can offer further clues about how competitive dynamics are evolving in the market.
By thoroughly evaluating these factors, you can better understand the potential of investing in top 10 aviation companies in India or other promising aviation stocks.
Advantages Of Investing In Best Aviation Stocks India
Investing in aviation stocks in India can offer several advantages, especially in a fast-growing market:
- High Growth Potential: The aviation industry in India is expanding rapidly, driven by increased domestic and international air travel demand. Airlines like IndiGo and Air India are seeing increased passenger traffic, which can boost revenues.
- Government Support: Initiatives like the UDAN scheme are promoting regional connectivity, which benefits both airline companies and airport stocks. This policy support can drive long-term growth in the sector.
- Market Leaders: Top airlines such as IndiGo dominate the market, giving them the ability to expand their fleets and increase their routes. This strong market position often translates into stable returns for investors.
- Global Opportunities: Indian airlines are expanding internationally, creating new revenue streams. This can lead to higher profitability for aviation stocks India.
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.
Who Should Invest in Aviation Stocks in India?
Investing in aviation stocks India is suitable for individuals who:
- Have a Long-Term View: The aviation industry in India is expected to grow over the long term. Investors with a long-term horizon may benefit from this growth.
- Are Comfortable With Volatility: Since the airline industry is sensitive to factors like fuel prices and economic conditions, investors must be able to withstand market fluctuations.
- Seek Exposure to Growth Sectors: For those looking to invest in high-growth sectors, the aviation industry offers potential opportunities as air travel continues to increase across India and internationally.
- Understand Industry Risks: Investors who are aware of the risks associated with aviation stocks—such as operational costs and economic sensitivity—can make informed investment decisions.
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 About Aviation Stocks
Which is the largest airline company in India?
With the market capitalisation of Rs. 1,68,885.43 cr., Interglobe Aviation Ltd is the largest airline company in India.
What factors should I consider when investing in aviation stocks?
When considering investing in aviation, it is essential to carefully evaluate the company’s financial performance, as this is the most crucial factor to consider. Investors should closely monitor the aviation company’s profit margins, cash flow, debt percentage, and revenue margins.
What is the GDP contribution of aviation stocks?
The aviation sector contributes approximately 5% to India’s GDP, supporting around 40 lakh jobs directly and indirectly through various related industries, including tourism and logistics. This significant contribution underscores the sector’s role as a catalyst for economic growth and employment generation in the country.
What Is the difference between a legacy airline and a low-cost carrier?
Legacy airlines are traditional carriers that typically offer a full range of services, including premium seating, in-flight meals, and loyalty programs, often operating on established routes. In contrast, low-cost carriers (LCCs) focus on minimising operational costs by offering no-frills services, charging for extras like baggage and meals, and often flying to secondary airports to reduce fees. This distinction affects their pricing strategies and target customer segments.
What are the top international airlines operating in India?
The top international airlines operating in India include Emirates, Qatar Airways, Lufthansa, Etihad Airways, Singapore Airlines, British Airways, Air France, Cathay Pacific, Thai Airways, and Turkish Airlines. These airlines are known for their extensive global networks and high-quality service.
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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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