Airline Stock Under Rs 50: The Company Has Successfully Resolved Its Dispute with Willis Lease Finance Corporation
The company has a market cap of over Rs 6,000 crore.
SpiceJet has successfully resolved its dispute with Willis Lease Finance Corporation, resulting in significant savings for the airline. This settlement marks a crucial step in SpiceJet's financial turnaround, following a substantial Rs 3,000 crore infusion through a Qualified Institutional Placement (QIP) in September 2024 and an additional Rs 294.09 crore from promoter Ajay Singh. These funds have bolstered the airline's financial position, enabling it to resolve outstanding disputes and focus on operational growth. Ajay Singh, Chairman and Managing Director of SpiceJet, stated, 'This successful settlement with Willis Lease reflects the positive impact of our financial restructuring strategy. The QIP and the subsequent promoter funding have strengthened our ability to resolve long-standing disputes, enhance financial stability, and drive operational growth.' The airline has consistently worked towards resolving past liabilities and strengthening its balance sheet, positioning itself for long-term operational and financial success.
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SpiceJet Ltd is a prominent low-cost airline in India, primarily engaged in air transport services for passengers and cargo. It operates approximately 250 daily flights to 48 domestic and international destinations, with a fleet that includes Boeing 737 Max, Boeing 700, and Q400 aircraft. Despite being the fifth-largest player in the domestic aviation industry with a market share of about 5.5 per cent in CY23, SpiceJet has experienced a decline from its previous position due to the grounding of a significant portion of its fleet. The airline's business segments include Air Transport Services, which accounted for 96 per cent of its revenue in H1 FY23, and Freighter & Logistics Services under the SpiceXpress brand. In March 2023, SpiceJet hived off its cargo and logistics business into a separate entity, SpiceXpress and Logistics, for Rs 2,556 crore. The company has been actively involved in settlements to resolve past liabilities, including securing full ownership of 13 Q400 aircraft and finalizing lease agreements for additional aircraft to enhance capacity.
As of March 27, 2025, SpiceJet's stock is priced at Rs 45.58. The 52-week high is Rs 77.79, and the 52-week low is Rs 42.29. SpiceJet's market capitalisation stands at Rs 6,350 crore. The stock has experienced a 1-year return of -26.42 per cent and a 3-year return of -21.04 per cent. Major public shareholders include Authum Investment & Infrastructure Limited with 2.90 per cent and Plutus Wealth Management LLP with 1.29 per cent.
Despite a 35 per cent year-over-year (YoY) drop in sales to Rs 1,237.0 crore, compared to Rs 1,914.4 crore in Q3 FY23, the company demonstrated a significant financial recovery; EBITDA losses narrowed by 21 per cent YoY to Rs -188 crore, and net profit turned positive at Rs 25 crore, a 108 per cent YoY improvement. This positive shift, alongside a 104 per cent increase in EPS to Rs 0.19, was largely attributed to a 72.3 per cent surge in other income to Rs 417.1 crore, which compensated for the operational revenue decline.
In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 crore and a net loss of Rs 424 crore in FY24. The company has a market cap of over Rs 6,000 crore.
Disclaimer: The article is for informational purposes only and not investment advice.