Penny Stocks Alert: Airline Share Hits New High On Plans For NSE Listing; Gives Over 100% Returns In 6 Months

Airline stock, SpiceJet rallied to hit a new 52-week high on Monday after it announced its plan to list securities on NSE. This penny stock has given strong performance in six months, rising by more than 100% and doubling investments. Not just that SpiceJet has also risen by nearly 164% from its 1-year low.

At the time of writing, SpiceJet shares traded at Rs 59.15 apiece, up by 7.6% on BSE with over Rs 4,020 crore market cap. The stock has climbed by nearly 9% with a new 52-week high of Rs 59.70 apiece in the early trade.

In its regulatory filing, SpiceJet said, "in order to reach wider investor base, the Company shall soon be listing its securities on National Stock Exchange of India Limited."

Apart from this, SpiceJet witnessed a buying spree after the Dubai International Financial Centre (DIFC) court in its favour directed an inquiry into losses suffered by the airline over the grounding of aircraft at Al Maktoum International Airport, Dubai (DWC).

On October 30th, DIFC froze an order related to certain engines installed on aircraft bearing the Indian registration mark VT-SLM. As a result of the aforesaid Order, the aircraft was grounded at Al Maktoum International Airport, Dubai (DWC) and has remained there since.

But last week, on Friday, SpiceJet said, "The Order was discharged in favour of SpiceJet. Additionally, the Judge has directed an inquiry into losses suffered by SpiceJet as a result of the Order having been made. The Court has further ordered to pay towards the legal costs incurred by SpiceJet." This outcome arrived in a DIFC court hearing on December 7th.

In six months, SpiceJet shares have emerged as a multi-bagger with an upside of a whopping 106.10% on BSE. The stock was less than Rs 30 six months ago. But from its 52-week low of Rs 22.65 apiece, SpiceJet zoomed by a massive 163.6%.

For instance, if investors pumped in Rs 1 lakh for SpiceJet shares six months ago, their investment has doubled to more than Rs 2 lakh corpus. But for those investors who invested the same amount during its 1-year low, their investment value has skyrocketed by over Rs 2.63 lakh as of now.

SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy-class seating in India.

As per Trendlyne, SpiceJet shares have crossed their 50-day and 100-day SMAs of Rs 39.4 and Rs 36.2 per share respectively. However, the stock's RSI and MFI are at Rs 75.2 and Rs 85.9, indicating overbought. The consensus recommendation from 2 analysts for Spicejet is HOLD. Meanwhile, EPS is expected to grow by 129.6% in FY24.