FIIs increase stake in Q1: Multibagger airline stock under Rs 70 jumps over 5 per cent with over 45 lakh shares changing hands!
The stock gave multibagger returns of 112.5 per cent from its 52-week low of Rs 30.92 per share.
Today, shares of SpiceJet Ltd gained 5.55 per cent to Rs 65.70 per share from its previous closing of Rs 62.26 per share. The stock’s 52-week high is Rs 77.50 and its 52-week low is Rs 30.92. Today, a total of 45 lakh shares changed hands on BSE till 12 noon. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
Earlier, the Company may issue shares up to a total of Rs 3,000 crore to any person or group of persons, at any time, at any price, and on any terms determined by the Board for business expansion. This includes the right to offer shares at a discount or premium to the market price, subject to applicable laws and regulations. The specific terms and conditions of the issue will be outlined in the offer document, placement document, or private placement offer letter.
Additionally, SpiceJet secured a significant legal victory against Kalanithi Maran, with the Supreme Court upholding a Delhi High Court decision that overturned a previous ruling requiring the airline to pay a substantial sum. This win allows SpiceJet to pursue a refund of the previously mandated amount. Separately, the company's board has approved plans to raise additional capital through equity or other financial instruments, subject to shareholder and regulatory approvals, to strengthen its financial position.
About SpiceJet Ltd
SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. 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.
Get Penny Stock Recommendations (under Rs 100) with DSIJ's Penny Pick service at a flat 35% off with coupon code FLASHH—limited-time Flash Offer! Click here to subscribe.
According to Quarterly Results, the company reported net sales of Rs 1,738.38 crore in Q4FY24. The operating profit increased by 18.4 per cent to Rs 401.33 crore in Q4FY24 over Q4FY23. The company reported a net profit of Rs 126.87 crore in Q4FY24 compared to a net loss of Rs 6.22 crore in Q4FY23, an increase of 2,140 per cent. SpiceJet significantly improved its financial performance in the fiscal year ending March 31, 2024, narrowing losses by nearly 73 per cent to Rs 409 crore compared to the previous year's Rs 1,503 crore.
This improvement was driven by a substantial increase in EBITDA to Rs 772 crore from a negative Rs 33 crore, and EBITDAR growing to Rs 1,410 crore from Rs 342 crore in the prior year. The airline also achieved an industry-leading domestic load factor of 92 per cent, a 1 per cent increase over the previous year, contributing to an 8 per cent improvement in passenger RASK due to a combination of higher yield and load factor. Additionally, SpiceJet strengthened its financial position by increasing its net worth by 20 per cent to Rs 646 crore compared to the previous fiscal year.
The company has a market cap of over Rs 4,900 crore. According to the shareholding pattern of June 2024, FIIs bought 8,85,885 shares and increased their stake to 1.81 per cent compared to 1.73 per cent in March 2024. The stock gave multibagger returns of 112.5 per cent from its 52-week low of Rs 30.92 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: Rs 42,000 crore order book & FIIs increase stake: This cable company bags new orders worth Rs 1171,00,00,000 in Middle East