SpiceJet Limited’s stock is showing signs of a strong comeback, drawing attention from both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs). The stock, which has a 52-week high of ₹77.50 and a 52-week low of ₹30, recently surged by over 8%, reaching ₹56.70 amid market fluctuations on Wednesday. This marks a significant recovery after a period of decline due to negative news surrounding the company.
Despite not making any major announcements recently, SpiceJet has introduced a new non-stop flight service. Starting from May 31, 2024, the budget airline will operate daily non-stop flights connecting Delhi and Phuket, complementing its existing routes from Kolkata and Delhi to Bangkok.
On the technical front, SpiceJet’s stock is trading above its 5-day, 10-day, 20-day, 150-day, and 200-day simple moving averages (SMAs), though it remains below the 30-day, 50-day, and 100-day SMAs. The stock is currently finding support in the ₹54-58 price zone.
In a significant legal victory, SpiceJet recently won a favorable Supreme Court verdict in its ongoing dispute with Kalanithi Maran. The court dismissed the appeal challenging the Delhi High Court’s decision in favor of SpiceJet, relieving the airline from paying a substantial amount to Maran.
Additionally, SpiceJet’s board of directors has approved a plan to raise additional capital through the issuance of equity shares or other fundraising methods. This move, pending shareholder and regulatory approval, aims to strengthen the airline’s financial position.
SpiceJet has been a key player in making air travel more affordable in India. The airline, which operates a fleet of Boeing 737s and Q-400s, is IATA-IOSA certified and is one of the largest regional carriers under the UDAN (Ude Desh ka Aam Nagrik) or Regional Connectivity Scheme.
According to the company’s Q4FY24 results, SpiceJet reported net sales of ₹1,738.38 crores. The airline’s operating profit increased by 18.4% to ₹401.33 crores compared to Q4FY23. Additionally, the company posted a net profit of ₹126.87 crores in Q4FY24, a remarkable turnaround from the net loss of ₹6.22 crores in Q4FY23, representing a growth of 2,140%. For the financial year ending March 31, 2024, SpiceJet significantly improved its financial performance, reducing its losses by nearly 73% to ₹409 crores from ₹1,503 crores in the previous year.
This financial improvement was driven by a substantial increase in EBITDA, which grew from a negative ₹33 crores to ₹772 crores, and EBITDAR, which rose from ₹342 crores in the previous year to ₹1,410 crores. The airline also achieved the highest domestic load factor in the industry at 92%, up by 1% from the previous year. This, coupled with a high yield, led to an 8% improvement in passenger RASK (Revenue per Available Seat Kilometer).
SpiceJet further bolstered its financial health by increasing its net worth by 20% to ₹646 crores compared to the previous fiscal year. The company currently has a market cap of over ₹4,300 crores. According to the March 2024 shareholding pattern, FIIs have increased their stake in the stock to 1.73%, and DIIs to 5.30%, compared to 0.33% and 0.04%, respectively, in December 2023. The stock has also surged 82% from its 52-week low of ₹30 per share.
SpiceJet reported a net profit of ₹126.87 crores in Q4FY24, a significant improvement from a net loss of ₹6.22 crores in Q4FY23. The company also reduced its annual losses by nearly 73% to ₹409 crores.
SpiceJet announced the start of daily non-stop flights connecting Delhi and Phuket from May 31, 2024.
SpiceJet’s stock has surged over 8%, reaching ₹56.70, and is up 82% from its 52-week low of ₹30 per share.
As of March 2024, FIIs hold a 1.73% stake, and DIIs hold a 5.30% stake in SpiceJet, up from 0.33% and 0.04%, respectively, in December 2023.
SpiceJet won a favorable Supreme Court verdict in its legal dispute with Kalanithi Maran, relieving the airline from paying a large sum that was previously mandated by a lower court.