Heavy buying multibagger penny stock below Rs 75 & FIIs bought 2,84,817: Airline stock skyrocketed 13 per cent on February 16
The stock gave multibagger returns of 125 per cent in just 6 months whereas BSE Small-Cap Index is up by 30 per cent.
Today, the stock market was trading in green with the BSE Sensex Index and the NSE Nifty-50 Index both gaining over 0.50 per cent each. About 2,285 shares have advances, 1,393 shares have declines and 120 shares are unchanged.
Along the market in green, one multibagger airline stock gained 13 per cent to an intraday high of Rs 71.90 per share from its previous closing of Rs 63.63. The stock’s 52-week high is Rs 77.50 while its 52-week low is Rs 22.65 per share. The shares of the company saw a heavy volume today with a spurt in volume by more than 1.06 times and approx. 1 crore quantity traded.
The stock name is SpiceJet Ltd.
SpiceJet Ltd is principally engaged in the business of providing air transport services for the carriage of passengers and cargo. The company is the 2nd largest player in the domestic aviation industry with a market share of 13 per cent. The company has a market cap of over Rs 4,800 crore.
SpiceJet expands its Haj operations to seven Indian cities - Srinagar, Gaya, Guwahati, Bhopal, Indore, Aurangabad, and Vijayawada - aiming for even higher revenue in 2024. Building on its successful track record (INR 337 crore earned last year), the airline commits to a seamless travel experience for pilgrims with dedicated wide-body aircraft and enhanced services, especially for Srinagar flights. Operations kick off on May 9, 2023 with flights to Medina.
Earlier, SpiceJet, the Indian low-cost carrier, received a much-needed boost as the National Company Law Tribunal (NCLT) dismissed an insolvency petition filed against it by aircraft lessor Wilmington Trust SP Services. This follows a similar ruling in December against another lessor, Willis Lease Finance Corporation.
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Additionally, SpiceJet raised Rs 744 crore in the first tranche of a Rs 2,240 crore preferential capital infusion, allocating shares and warrants to investors like Elara India and Carlyle Aviation. The company seeks an extension to complete the remaining allotment due to limited banking days and anticipates this funding to bolster its expansion, enhance its finances, and solidify its position as a reliable carrier.
In January 2024, FIIs bought 2,84,817 shares and increased their stake to 0.84 per cent compared to 0.33 per cent in December 2023. The stock gave multibagger returns of 125 per cent in just 6 months whereas BSE Small-Cap Index is up by 30 per cent. 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 galvanized 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.
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