American aircraft maker Boeing says India will require 2100 new commercial planes over two decades.
Not just the Boeing, here is what Airbus says: India needs 1,610 new planes over 20 years. The European plane maker Airbus estimated, more than a year ago, the requirement of such a huge numbers of aircraft for India.
At the same time, CNN asks the question- India is buying over 1000 new planes, but can it handle them? CNN questions the availability of infrastructure in India to handle the planes.
At the same time, CEO of portfolio management servie (PMS) firm Equity Intelligence India, small cap expert, Porinju lightly says Aircrafts can not land on paddy fields. He says in an interview to BTV, there is a huge opportunity for infrastructure development companies involved in constructions and maintenance of airports. Planes can only land and take off from runways meant for them. So, who builds the runways?
He does not stop at telling such stories, he had already invested hugely in one such infrastructure development company. The Equity Intelligence India bought around 18.8 million shares of GVK Power and Infrastructure at Rs 9.61 per share in an open market operation. Thus the Porinju's PMS firm holds 1.19% stake in GVK power and infrastructure.
GVK also turned to profit in the 1st quarter of the FY 2017-18. A news article in The Hindu read "It posted a net profit of Rs. 6.77 crore for the first quarter ended June 30, 2017, against a loss of Rs. 51.04 crore in the corresponding quarter last year on a standalone basis. The company's total revenue was up at Rs. 22.42 crore against Rs. 16.85 crore."
The share price of the GVK is also zoomed due to all these positive factors. It is not yet a multi-bagger. Porinju says he believes in buying multi-baggers.
|Times of India: India will require 2100 new planes, says Boeing|
|Livemint: India needs 1610 new planes over 20 years|
|CNN reports India lacks infrastructure to handle the planes it is going to buy|
|Porinju Says Aircraft can not land on paddy fields emphasising the need for infrastructure developments|
What does GVK do? If you go for an air-travel from one city to another in India, at least one of the airport you take off from or land at would be developed by GVK.
|GVK- in Airport development business|
|The Hindu: GVK posted Rs 6.77 crore profit in the 1st quarter of 2017-18|
Disclaimer: This is neither an analysis nor the recommendation of the stock. This is purely a collection of some of the news capsules from the business and market world. Consult your advisor or do a thorough study before investing.