News, Scrip Scan

SpiceJet hits new high, IndiGo nears record high

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

SpiceJet hits new high, IndiGo nears record high

SpiceJet hits new high, IndiGo nears record high on ATF prices cut

SpiceJet hit an all-time high of Rs 157, up 8%, while InterGlobe Aviation, the operator of IndiGo, was up 2% at Rs 1,712, trading close to its all-time high level of Rs 1,716 touched on May 8, 2019.

Shares of aviation companies were in focus after they rallied up to nearly 8 per cent on the BSE during the early morning trade on Monday. Heavy volumes of shares were being traded at the bourses after Indian Oil Corporation slashed Aviation Turbine Fuel (ATF) price, which makes up 40 per cent of an airline’s cost structure, for the first time in the past five months.

Following the price cut, SpiceJet hit an all-time high of Rs 157 pe share, up 8 per cent, while InterGlobe Aviation, the operator of IndiGo, gained 2 per cent to trade at Rs 1,712 apiece. The latter was close to its all-time high level of Rs 1,716 touched on May 28, 2019 in intra-day trade.

SpiceJet counter saw huge trading volumes with 3.69 million shares already changing hands till 10:13 am, as compared to an average 3.66 million shares being traded daily in the past two weeks on the BSE.

The domestic brokerages remained bullish on SpiceJet with 12-month target price in the range of Rs 172 to Rs 211 per share.

“Over half of Jet Airways’ domestic slots along with its entire international slots are yet to be allocated. If Jet shuts down, SpiceJet will be the prime beneficiary given complementary fleet portfolio. This will lead to further upside to our estimates. We expect SpiceJet to turn profitable in FY20 as yields expand while fuel costs moderate,” analysts at Edelweiss Securities said in a result update with target price of Rs 179 per share.

Analysts at Prabhudas Lilladher also remained positive on SpiceJet on the back of massive fleet expansion plan, strong yield environment post Jet’s suspended operations, prime slots at key airports, strong regional operations, codeshare with Emirates and likely return of Boeing 737 Max in July/August.

“All this will lead to ASK/Revenue & EBITDAR CAGR of 47 per cent/51 per cent & 72 per cent respectively,” they said.

The brokerage firm maintains ‘buy’ rating on the stock with target price of Rs 211 per share. Abnormal increase in crude oil prices & irrational yield environment remain a key risk, it added.

https://www.business-standard.com/article/markets/spicejet-hits-new-high-indigo-nears-record-high-on-atf-prices-cut-119060300232_1.html

Excerpts from Gaurav’s Blog

  Rest in Peace now Gerela Saab  ! Mr S T Gerela ex GM of BSE passed away peacefully this morning We had not met in years but he always remained at the top of my mind when it came to testimonials for this is what he had said to me over a decade ago,when […] [...]

Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! Promoter Group of  Vedanta Ltd has proposed a voluntary de-listing at an indicative offer price of Rs 87.50~are the over 7.3 lakh minority shareholders from Alibag !? …apologies to the people of Alibag Some would term this as De-listing Duplicity ~ but I would […] [...]

This is a Riskless Reliance Industries Rights Investment Strategy for those over 2.3 Million Shareholders already holding RIL shares. It is not a recommendation to buy RIL cum rights  It’s a no brainer yet I’m just penning a brief note because some have told me they hold Reliance but are skipping the Rights ! Don’t […] [...]

 Wealth is negotiable, Health is not Your Personal Well Being is more important that the Stock Market Well Being ~ Always & more so in this unfathomable ongoing Covid-19 Reality Above’s a three minute reach out by me last night to all connected with me to reinforce this .It’s also posted on Facebook , […] [...]

Yes Bank ~ Has the RBI & MOF lost it !? SEBI really is a bystander here Controversial Lock In Clause 3 Sub Clause 8 (a) in the Scheme of Reconstruction  No wonder the Finance Minister Mrs Nirmala Sitharaman, while highlighting only selected points, even when asked for details of the Scheme,did not want to […] [...]