I started researching the stock since the Dividend Yield was on the higher side (around 10%) and RoE is at 70.46%.

Summary:
+ves
>> EBDITA Margins are improving
>> Available at a reasonable PE of 10.82
-ves
>> Dividend payout is made dipping in to Reserves (not sustainable over longterm)
>> Caters to airline industry
>> not a sector leader

The profit reported in P&L for 2012-13 is 84.38 Cr. The Dividend along with Div. Tax paid is Rs. 122.25 Cr.
The profit reported in P&L for 2011-12 is 40.78 Cr. The Dividend along with Div. Tax paid is Rs. 42.26 Cr.
The company is paying such high dividend by dipping in to Reserves which have decreased from Rs. 137.53 Cr. to 101.96 Cr. The company is partly capitalizing Expenses though capitalization has decreased.

However I could not conclude whether to purchase or not. I seek the views of other members on the stock.

one more negative .. it operates in a very niche market of airlines billing and credit management ..else gud ratio but from here how much business can it scale u think ??? it could be gud punting stock but very sceptical to keep in core portfolio plus as u said dividend is more than profit and also more than operating income in cash flow?? what does management say about it?