Small Cap Airlines Stock Hits 20% Upper Circuit, Gains 95% In 6-Months

Leading budget airline company Spicejet Ltd shares today hit 20% upper circuit on BSE ahead of the December 12, 2023 board meeting. Last trading price of Spicejet share is Rs 52.29 per share. The company has a market capitalisation of Rs 3577.37 crore. Spicejet shares soared 95% in last 6-months and gained 34% year-to-date. Check details below:

Board of Directors of Spicejet To Meet On December 12: According to the regulatory filing of the company dated December 6, 2023, "This is to inform you that the Board of Directors of the Company in its meeting scheduled on December 11, 2023 (Monday) will discuss and consider, inter-alia, options for raising fresh capital through issue of equity shares and/or convertible securities on preferential basis, in accordance with the relevant provisions of applicable laws and subject to approval of the shareholders of the Company and receipt of applicable regulatory approvals, as may be required."

Spicejet Stock Performance & Return: Current market price of Spicejet stock on BSE is Rs 52.29 apiece. Its 52-week high price is Rs 52.29 per share and 52-week low price is Rs 22.65 per share, respectively. Spicejet shares gained 18% in last 1-week, soared 38% in last 1-month, and offered return of 28% in last 3-months. In last 1-year, Spicejet stock rallied 27% and declined 23% in last 2-years.

Meanwhile, experts are extremely bullish on the stock, which is significantly undervalued.

"SpiceJet, with its market capitalization currently standing at around INR 4000 crore, appears to be significantly undervalued when compared to its peers in the Indian aviation industry. A substantial equity infusion into the airline can turn around the fortunes of the 18-year-old airline," said Avinash Goraskshakar, Head, Research at Profitmart Securities.

"This stark difference in market capitalization positions SpiceJet as an attractive investment opportunity, offering substantial growth potential and attractive returns for investors," Avinash added.

The airline has multiple strong points to its advantage. "SpiceJet holds coveted slots and routes at all important Indian and international airports like Dubai, Thailand, Oman, Colombo, Male etc., providing a competitive edge in the market and contributing to its potential for sustained growth. It also has a 200 plus plane order with Boeing for the it's 737 Max aircraft."

"A correction in SpiceJet's stock prices is imminent and could result in sizeable returns for investors. We believe it stands out as the best bet among Indian aviation companies for growth and returns. SpiceJet's current share prices present an advantageous entry point for investors looking to capitalize on potential upward movements," a senior SpiceJet official said.

About: SpiceJet is India's most preferred low-cost airline, connecting the remotest corners of the country. We operate the maximum number of UDAN flights in India, addressing our vision to make flying affordable and approachable for Indians. In fact, we have single handedly changed the air travel industry in India and there is no stopping at that. We are constantly adding new destinations, expanding our fleet, and enhancing our services to reach out to millions of flyers in India and across the world.

Disclaimer:

The stock highlights the rally in shares ahead of board meeting and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.