Global Vectra Helicorp Ltd: Ready To Soar High

CMP: Rs.61.85, T: Rs.91, SL: Rs.57.

Introduction: Global Vectra Helicorp Limited (GVHL) is the largest private sector helicopter operator in India, with nearly two decades of experience in providing seamless, safe, and accident-free helicopter services.

The Company's operations include offshore oil and gas support, onshore operations for state governments (VVIP flying), election flying, heli pilgrimage, and much more.

The company is also a pioneer in the use of helicopters to conduct specialised aerial geophysical surveys and in the provision of power industry support services.

GVHL is an ISO 9001-2015, ISO 14001-2015, and OHSAS 45001-2018 certified Company.

These certifications overarch all GVHL activities, including flight operations, engineering, safety, quality control and commercial systems.

GVHL is a long-term Corporate Member of the Rotary Wing Society of India (RWSI) and a member of Heli offshore, the global safety focused association for the offshore helicopter industries. Its prime objective is to continue to deliver world class standards of safety and service to India’s helicopter industry and to be the leader in Offshore Oil & Gas operations. To capitalize on this, GVHL will continue to expand its fleet and adapt its services to meet the dynamic needs of these markets.

Being the largest private sector helicopter operator in India, GVHL has always ensured that safety is paramount in its operations and has recorded over 2,73,000 accident free hours to date and has also been commended for its safety initiatives, including being awarded “Operator of the Year ”in 2016 and 2017 by the India Business Aircraft Operators Association. 

GVHL has a total staff of over 400 personnel, including pilots, engineers and support staff.

Triggers: 

• The number of Omicron cases are reducing in Mumbai, which is a good news for the aviation sector. 
  
• 
  The company came out with good set of numbers for the Q2FY22, when the net loss got reduced substantially.
• In October last year, there were media reports that Civil Aviation Ministry had allowed airlines to operate at 100% of their scheduled capacity from October 18, 2021 onwards. However, restrictions on fare bands continue to be in place. This is a step in right direction, since on a sequential basis from June 2021 there has been a steady rise in domestic passenger traffic on month on month basis; reflecting a pick up in leisure and corporate travel. Moreover, the last quarter and this quarter encompasses festive and tourist seasons. Photo: Just Dial.
•  The Ministry has modified its earlier order on August 12, 2021, stating that the passenger capacity has been increased from 72.50% to 85%.
• 
  The NDA Government is giving special focus on the states with tourism destinations in the country and efforts are being made in prioritizing the tourist destinations in its vaccination efforts as  the government is focused on bringing the tourism destinations to the pre-COVID situation. 2nd Photo: BSE
• According to Simplywall.com: Global Vectra Helicorp Ltd (Rs.62.80) has Rs.487.50 million of debt as of September, 2021 down from Rs.584.20 million a year back. But since it has a cash reserve of Rs.222.50 million, its net debt is a meagre Rs.265 million (Rs.26.50 crore).
• On the other hand it's liabilities outweigh the sum of its cash and near term receivables by Rs.5.65 billion. But, the situation is going to change in this CY22. 
• According to a recent media report, the government of India said that International tourism will be promoted in the country. The government has a special focus on vaccination at destinations like Goa, Himachal Pradesh, Kerala, Andaman and North East. The Central government has also recently taken several steps to encourage foreign tourists.

Conclusion: When this stock starts hitting UCs, it becomes difficult to enter. Hence, buy the scrip, when it is available free, for medium term target of Rs.100 - plus.