Multibagger airline stock below Rs 60 in green after the company finalises lease agreement for 10 aircraft to boost capacity ahead of summer schedule; details inside!

The stock gave multibagger returns of over 140 per cent from its 52-week low of Rs 22.65 per share whereas BSE Small-Cap Index is up by 54 per cent in the same period.

SpiceJet Ltd has finalised lease agreements for 10 aircraft as part of its efforts to augment capacity in preparation for the upcoming summer schedule. This move underscores SpiceJet's commitment to providing seamless connectivity and enhanced services to its passengers during peak travel seasons. The additional aircraft will enable the airline to meet the growing demand for air travel, particularly during the busy summer months.

SpiceJet has received three airframes as part of recent settlement agreements, further strengthening its fleet capabilities. These settlements with key aircraft lessors have also resulted in savings of INR 685 Crore for the airline.

On March 7, SpiceJet announced the successful resolution of a USD 49.8 million (Rs 413 crore) dispute with Echelon Ireland Madison One Ltd. The settlement resulted in savings of USD 48 million (Rs 398 crore) for SpiceJet and the acquisition of two airframes. Additionally, SpiceJet resolved a USD 11.2 million (Rs 93 crore) dispute with aircraft leasing firm Cross Ocean Partners, resulting in the transfer of an airframe and an engine to the airline.

Moreover, SpiceJet and Celestial Aviation, a subsidiary of AerCap, mutually settled their USD 29.9 million (Rs 250 Crore) dispute, resulting in a saving of Rs 235 Crore for SpiceJet. SpiceJet remains steadfast in its mission to serve the Indian aviation sector and looks forward to continuing its growth trajectory while delivering unparalleled value and convenience to passengers across the country.  

SpiceJet, India's favourite airline thanks to its affordable fares, boasts a modern fleet including Boeing 737s, Q-400s & freighters. As the country's largest regional player under UDAN, they operate numerous daily flights connecting various regions. Additionally, SpiceMax provides passengers with the most spacious economy-class seating available in India.

Today, one of the Top Gainers on BSE & NSE, shares of SpiceJet Ltd surged 6.21 per cent to Rs 53.50 from its previous closing of Rs 50.37 per share with an intraday high of Rs 54.50 and an intraday low of Rs 48.50. 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 140 per cent from its 52-week low of Rs 22.65 per share whereas BSE Small-Cap Index is up by 54 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 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.