Best Aviation Stocks in India
(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)
Over recent years, the aviation sector has experienced remarkable growth and transformation, thanks to factors like rising disposable incomes and government efforts to enhance infrastructure and attract foreign investment.
Today, India stands as the third-largest domestic aviation market globally, fuelled by supportive government policies. The Indian airline industry not only enhances global connectivity but also drives economic growth.
As a result, aviation stocks in India present promising investment opportunities.
Aviation Industry in India - A Brief Overview
India's aviation industry is recognised as one of the fastest-growing and largest in the world, following China and the US. Back in 1953, the Indian government nationalised the aviation sector, taking control of major airlines.
Today, the industry encompasses domestic and international airlines, airports, and related services like ground handling and cargo operations. India leads South Asia in air traffic, accounting for about 69% of the region's total trips.
Factors such as increasing household incomes, the emergence of low-cost carriers, higher foreign investment, and a growing GDP are driving the growth of the aviation sector. The government and private sectors are making substantial investments in infrastructure to support this expansion. Furthermore, the industry has also generated numerous job opportunities and made significant contributions to India's economic growth.
The size of the Indian aviation market is expected to increase from 13.89 billion USD in 2024 to 26.08 billion USD by 2030, with a CAGR of 11.08% during the forecast period (2024-2030).
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Top Aviation Stocks in India in 2024 as per Market Capitalisation
The following table mentions the top aviation stocks listed in the stock market as per market capitalisation:
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Best Aviation Stocks in India (as per market capitalisation) |
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*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog. |
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Overview of Best Aviation Stocks in India
Here, you will get a comprehensive overview of the top airline stocks in India in 2024 as per market capitalisation:
1) InterGlobe Aviation
Founded in 2004, InterGlobe Aviation Limited is India’s largest and most preferred passenger airline worldwide. It offers tickets at affordable rates, ensures flights are punctual and strives to deliver hassle-free travel experience across its extensive network.
With a fleet exceeding 358 aircraft and more, this airline connects passengers across the globe to over 118 destinations. With a market share exceeding 62%, InterGlobe Aviation Limited flies to 86 destinations within India and 32 internationally.
Operating more than 2,000 daily flights with a notable on-time performance, it offers straightforward yet efficiently executed travel products, including exclusive vacation packages to different destinations. In addition, It handles preflight and post-flight ground operations and additional services like in-flight catering.
2) SpiceJet
SpiceJet Limited (SpiceJet) operates as a low-cost airline in India, connecting the many remote areas of the country. It operates the highest number of UDAN flights in India, aiming to make air travel affordable and accessible for all Indians. With an unwavering commitment to innovation and growth, SpiceJet has revolutionised the air travel industry in India and continues to expand its reach.
It operates approximately 250 daily flights to 48 destinations within India and abroad. SpiceJet maintains a diverse fleet comprising Boeing 737 Max, Boeing 700, Q400, and Freighter aircraft. Moreover, it provides a wide range of services, including foreign exchange and travel assistance.
The company has subsidiaries like SpiceJet Merchandise Private Limited and Canvin Real Estate Private Limited.
3) Global Vectra Helicorp
Global Vectra Helicorp Limited (GVHL) is India's largest private helicopter company, offering safe and professional helicopter services for more than 24 years.
Its operations support the offshore oil and gas industry, cater to onshore operations for state governments, conduct election flights, facilitate helicopter pilgrimages and offer various other rotary services. Additionally, the company conducts specialised aerial geophysical surveys and provides support services for the power industry.
Global Vectra Helicorp Limited primarily operates from its main base at Juhu Airport in Mumbai, with additional sub-bases located across India.
With a fleet of over 25 helicopters, GVHL boasts a relatively young fleet operated by experienced aircrews and maintained by a team of skilled engineers, technicians and support staff.
Factors to Consider Before Investing in Aviation Stocks in India
Before investing in the airline stocks in India, it is crucial to assess various key factors that can significantly impact investment decisions.
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Evaluate Financial Health
First, you must analyse the airline company's financial performance, including revenue trends, profit margins, debt ratios, and cash flow stability. Then, you must examine the company's historical performance to ensure consistent profitability.
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Assess Market Position
To understand how competitive the company is, look at its market share. It tells you how much of the market it controls compared to other companies. By comparing it to competitors, you can see where it stands in the industry and how strong it is compared to others.
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Economic Factors
Take into account the overall economic conditions in India, including GDP growth, inflation rates and interest rates. These macroeconomic factors play a significant role in shaping the aviation sector's performance.
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Understand Regulatory Environment
You should pay attention to any changes in regulations because these can have a big impact on the aviation industry and individual companies. Being aware of possible changes in rules helps you predict how they might affect business operations.
Should You Invest in Aviation Stocks?
The aviation industry offers a range of opportunities, with companies operating in various sectors like airlines, aircraft manufacturing and airport services. However, investing in aviation stocks comes with its challenges. Factors such as government regulations, geopolitical tensions, fuel price fluctuations and the impact of global health crises can affect the performance of aviation stocks.
Therefore, it is crucial to stay informed about market developments before making investment decisions. Additionally, you must regularly review your investment strategy to make sure it aligns with your financial goals and risk appetite.
The Bottom Line
Investing in airline stocks in India presents lucrative opportunities amidst the country's thriving aviation sector. However, it is essential to thoroughly evaluate the key factors mentioned above before making investment decisions.
With careful research and strategic planning, investing in airline stocks can potentially yield significant rewards if you are looking to capitalise on India's growing aviation industry.
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*Stock Selection Criteria for Top Stocks Based on Market Capitalisation These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). |
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. To read the RA disclaimer, please click here |