Multibagger airline stock under Rs 70 to keep under the radar as company likely raise fresh capital through QIP

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 28 per share whereas BSE Small-Cap Index is up by 60 per cent in the same period.

Today, shares of SpiceJet Ltd surged 4.92 per cent to Rs 58 per share from its previous closing of Rs 55.28. The stock’s 52-week high is Rs 77.50 and its 52-week low is Rs 28.

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.

SpiceJet Ltd informed that a meeting of the Board of Directors of the company will be held on July 23, 2024 (Tuesday), inter-alia, to consider and approve raising fresh capital through issue of eligible securities to qualified institutional buyers by way of qualified institutional placement (QIP) under the provisions of the SEBI.

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.

SpiceJet secured an in-principle approval from BSE in January for a potential Rs 2,242 crore capital infusion and subsequently raised Rs 1,060 crore through preferential share issuance in two phases. By the end of March, they had completed this Rs 1,060 crore capital infusion, settled a USD 22.5 million dispute with Export Development Canada, resolved Rs 755 crore in liabilities and cleared over USD 50 million owed to various lessors. Currently, SpiceJet successfully operates Haj pilgrimages from seven Indian cities and has expanded its Thai service to include Phuket alongside Bangkok.

The company has a market cap of over Rs 4,400 crore. According to the shareholding pattern of March 2024, FIIs increased their stake to 1.73 per cent and DIIs increased their stake to 5.30 per cent compared to 0.33 per cent and 0.04 per cent in December 2023. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 28 per share whereas BSE Small-Cap Index is up by 60 per cent in the same period. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.

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