Which is Best Among Kingfisher Airlines or Jet Airways or Spice Jet– Choosing Between Worst Cases

Best - Kingfisher Airlines or Jet Airways or Spice Jet

If one has to choose between a Kingfisher Airlines or Jet Airways or Spice Jet one can consider Jet Airways better than Spice Jet and same is better than King Fisher. Please go through the below note to arrive at a logical conclusion.

As we can see that Kingfisher Airlines Ltd’s loan funds stand at Rs7,543 crore (debt-to-equity ratio of about 3.2) and that of Jet Airways (India) Ltd’s is Rs14,123 crore (debt-to-equity about 4.2). Spicejet Ltd, on the other hand, has the lowest debt at Rs712 crore (debt-to-equity about 0.7). Of course, SpiceJet’s scale of operations, going by revenue, is much lower than the other two. For instance, SpiceJet’s revenue for the quarter ending September is 23% of Jet’s revenue during the same period.

On comparing the asset base of the three, Jet Airways seems to have the strongest balance sheet. Kingfisher’s fixed assets stand at Rs2,286 crore, but it has a negative net working capital (excluding cash and bank balance) of Rs1,970 crore. Jet Airways has a much stronger asset base with the value of its fixed assets at Rs14,417 crore; its negative net working capital (excluding cash and bank balances) is relatively much lower at Rs560 crore. SpiceJet has a total fixed asset base of Rs1,115 crore.

Thus if you have been considering an exposure in the aviation sector in India, than without any doubt one can go for Jet airways and one will be able to make good amount of profit in future once the aviation industry starts making profit. As of now complete aviation industry is in loss. Keep visiting our website for free stock tips which can help finance your child dreams.