Multibagger penny stock at Rs 60 & FIIs increase stake: This airline company to enhance Haj operations with two wide-body A340 aircraft induction; details inside!

The stock gave multibagger returns of over 165 per cent from its 52-week low of Rs 22.65 per share whereas BSE Small-Cap Index is up by 55 per cent in the same period.

SpiceJet is gearing up for the upcoming Haj pilgrimage with a strategic move to enhance its operations. They have secured a lease agreement for two wide-body A340 aircraft, significantly increasing their fleet capacity. This decision highlights their commitment to providing exceptional service to pilgrims while also aiming to maximize their revenue during this crucial period.

The deployment of these A340 aircraft, each with a seating capacity of 324, will be primarily focused on originating from Srinagar and Guwahati. This move builds upon the success of SpiceJet's Haj operations last year, where they generated a substantial revenue of Rs 337 Crore. The airline is hoping to replicate this achievement in the upcoming pilgrimage season.

Furthermore, leasing these wide-body aircraft serves a dual purpose. It not only allows SpiceJet to cater to the specific needs of a large number of pilgrims but also paves the way for its long-term fleet expansion and network growth strategies.

To ensure a smooth travel experience for the pilgrims, SpiceJet has planned flights departing from seven Indian cities: Srinagar, Gaya, Guwahati, Bhopal, Indore, Aurangabad, and Vijayawada. These flights will commence on May 9th, 2024, with Medina as the designated destination. This initiative comes after their successful operation of over 200 Haj flights and transportation of more than 21,000 pilgrims in the previous year.

SpiceJet has significantly bolstered its fleet in preparation for the summer travel rush. By finalizing lease agreements for 10 new aircraft and acquiring 3 additional ones through settlements (saving over Rs 685 crore), the airline aims to meet the anticipated surge in demand and provide passengers with seamless connectivity and enhanced services during peak seasons. This expansion reflects SpiceJet's commitment to the Indian aviation sector, further strengthened by its successful resolution of disputes with lessors. As India's favourite low-cost carrier with a modern fleet and extensive regional network, SpiceJet offers passengers a comfortable and convenient travel experience, including the most spacious economy seating available in the country through their SpiceMax program.

Today, one of the Top Gainers on BSE & NSE, shares of SpiceJet Ltd surged 10.9 per cent to Rs 60 from its previous closing of Rs 54.11 per share with an intraday high of Rs 60 and an intraday low of Rs 53.06. The stock’s 52-week high is Rs 77.50 and its 52-week low is Rs 22.65. The stock gave multibagger returns of over 165 per cent from its 52-week low of Rs 22.65 per share whereas BSE Small-Cap Index is up by 55 per cent in the same period.

The company has a market cap of over Rs 3,600 crore. In February 2024, FIIs bought 4,62,33,331 shares and increased their stake to 6.21 per cent compared to December 2023. Investors should keep an eye on this small-cap stock.

Budget 2024 for Aviation Sector, Finance Minister Nirmala Sitharaman said; “The aviation sector has been galvanised in the past ten years. The number of airports has doubled to 149. The rollout of air connectivity to tier-two and tier-three cities under the UDAN scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have proactively placed orders for over 1,000 new aircrafts. Expansion of existing airports and development of new airports will continue expeditiously”.

Disclaimer: The article is for informational purposes only and not investment advice.