FIIs Bought 30,75,05,307 Shares & DIIs Bought 7,04,80,977 Shares: Multibagger Airline Stock Takes Off 8.71 Per Cent With Heavy Volume; Here’s Why
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share.
The Gujarat-based investment firm, Plutus Wealth Management LLP, acquired 85 lakh shares of SpiceJet on Monday through a block deal. The shares were purchased at Rs 59.95 each, valuing the transaction at Rs 51 crore. This marks the fifth block deal for SpiceJet in just a week, with other recent deals involving Singularity Holdings Limited, Vikasa India EIF I Fund, Societe Generale, and Authum Investment & Infrastructure.
In addition to these block deals, SpiceJet has successfully completed a Rs 3,000 crore Qualified Institutional Placement (QIP), attracting global investors like Goldman Sachs and Morgan Stanley. The QIP, along with a previous funding round, will provide SpiceJet with an additional Rs 3,736 crore in financial stability.
Meanwhile, the price of Aviation Turbine Fuel (ATF) has been reduced for the second consecutive month. In Delhi, the price dropped by 6.2 per cent to Rs 87,597 per kg in October from Rs 93,480 per kg in September. Similar reductions have been implemented in Kolkata, Mumbai, and Chennai. The new ATF rates are effective from October 1, 2024.
ATF and natural gas are currently exempt from Goods and Services Tax (GST) and are taxed at the state level. Airlines have been advocating for the inclusion of ATF under GST to simplify the tax structure and potentially reduce costs. The current state-level taxes on ATF vary across different states, leading to higher operational expenses for airlines. A reduction in ATF prices due to GST inclusion could also lead to lower ticket prices.
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About the Company
Today, shares of SpiceJet Ltd gained 8.7 per cent to Rs 69.25 per share from its previous closing of Rs 63.70 per share. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 34 per share.
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.
According to Quarterly Results, the company reported net sales of Rs 1,708 crore, operating profit of Rs 49 crore and net profit of Rs 158 crore in Q1FY25. In its annual results, the company reported net sales of Rs 7,085 crore, an operating loss of Rs 644 and a net loss of Rs 424 crore in FY24.
The company has a market cap of over Rs 8,700 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. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.