The Indian aviation sector has been facing turbulent times in recent years. On 02-May-2023, Go First Airlines (Founded as GoAir) voluntarily filed for Bankruptcy. On the date of writing this article. the airline company has canceled all flights till 12-May-2023. I’ll try to explain why in a buoyant and growing economy like India, Indian Airline…
Why I’m blogging about this topic? Considering the COVID-led collapse of the market, I was thinking about investing in stocks of Airline Companies. But when I saw their Profit & Loss Accounts for the last five years, I became hesitant. Why? Because even Interglobe Aviation (Indigo) has reported losses since covid. In this article, we…
Before we can do a leverage analysis of a company, we must know the basic definition of “leverage.” What is leverage? There can be two sources of capital for a company. First, equity and second is borrowed money (loan/debt). When a company uses loans to fund its capital requirements, we can say it is leveraged. What does the…
Understanding a company is essential before buying its stocks. Why? Because Stocks represent proportional ownership in a company. So, what is the utility of this information about stocks/business? Let’s understand this with an example. Consider yourself looking at two companies, Nestle India and Jet Airways. Former represents a healthy business, while the latter is languishing with…
GDP is measured in India by estimating GVA of “Individual sectors“. Before we proceed into further details, lets first know few basics about the following: GDP. GVA. Individual Sectors. What is GDP? Gross Domestic Product. GDP is a measure of “total value of goods and services” produced in a country. What means by total value of…
These days we often hear the phrase called “taking a haircut”. What does it mean, and how it effects a common man? In simple language, taking a haircut means “agreeing to settle a deal for a loss”. Why banks would agree to accept a loss making deal? To understand this, one must first understand what…
The business model of airports across the world is quite unique. Airports in itself is a hugely capital intensive investment. Both in terms of CAPEX and Operating costs, airports demand huge cash flows. Airport Authority of India (AAI) design, develops, controls and manages 126 nos airports in India. The breakup of these 126 nos airports are…
