InterGlobe Aviation, which runs India's biggest airline IndiGo, has had a bumpy ride since its market debut in November. IndiGo shares surged nearly 80 per cent from their issue price of Rs 765 to Rs 1,400 in less than two months of their debut. Since then, IndiGo shares have fallen sharply, rattling investors.
Taher Badshah, head of equities at Motilal Oswal AMC, however sees a strong potential in IndiGo and continues to hold IndiGo shares in the fund's portfolio. (Watch)
"(IndiGo) is a company which can further increase its market share... (Domestic aviation market) is significantly large and is under-penetrated," Mr Badshah told NDTV Profit.
"I don't see why this franchise over the next five years cannot double its value to what it is today," he added.
IndiGo's shares are trading near Rs 800 - down 40 per cent from their highs of Rs 1,400 and just 5 per cent higher than their IPO issue price.
"In case of InterGlobe, we don't really think there is a fundamental change in the premise based on which we bought the business. To that extent, we continue to hold it."
Other Picks
The fund manager is also positive on select PSU banking shares. The balance sheet clean-up efforts will help the state run banks, he said.
Mr Badshah also sees interesting opportunities in the auto and consumer product space, saying that these companies will benefit from a potential revival in rural demand.
Taher Badshah, head of equities at Motilal Oswal AMC, however sees a strong potential in IndiGo and continues to hold IndiGo shares in the fund's portfolio. (Watch)
"(IndiGo) is a company which can further increase its market share... (Domestic aviation market) is significantly large and is under-penetrated," Mr Badshah told NDTV Profit.
"I don't see why this franchise over the next five years cannot double its value to what it is today," he added.
IndiGo's shares are trading near Rs 800 - down 40 per cent from their highs of Rs 1,400 and just 5 per cent higher than their IPO issue price.
"In case of InterGlobe, we don't really think there is a fundamental change in the premise based on which we bought the business. To that extent, we continue to hold it."
Other Picks
The fund manager is also positive on select PSU banking shares. The balance sheet clean-up efforts will help the state run banks, he said.
Mr Badshah also sees interesting opportunities in the auto and consumer product space, saying that these companies will benefit from a potential revival in rural demand.
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