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Spice Jet Expansion to Focus on Growth and Profitability

SpiceJet Chief Ajay Singh is hopeful that Spicejet would be able to soon start operations of Sea Planes under regional air connectivity scheme (UDAN). He also appeared confident of growth of his ambitious fleet and route expansion plan. He plans to keep costs low to ensure profitability.

As per him things are shaping well. He also Brought out that SpiceJet have added lot of planes in the past few months and would add a lot more in 2019 and coming years. 

He also brought out the Cargo Plane operations are looking quite good and is confident of achieving profitability target. He said that SpiceJet has ordered 200 planes, which would be delivered by 2024 and 10 have already been delivered in Dec 2018. He also brought out that SpiceJet have ordered 50 small propeller planes for UDAN type of routes. Out of these 50 planes. 27 have already been received by SpiceJet. 

He said that SpiceJet made profit for 14-15 quarters in a row and only last 2-3 quarters were difficult due to massive increase in fuel price.

My Assessment.
In 2017-18, SpiceJet made a profit of Rs7799.53 cr which translated to an EPS of Rs 9.3. In first two quarters of 2018-19, SpiceJet incurred a loss of Rs 427.43. 

SpiceJet touched lifetime high of Rs156.25 in Dec 17. It touched 52 weeks low of Rs 60.6 in Oct 18. Today it closed at Rs 80.05 as it fell from Jan 2019 high of Rs 91.5. 

Retail investors, whose horizon is less than 5 years, should very carefully examine the fundamentals of the stock before investing. It is also advised that they seek advice of their financial advisor before investing as "INVESTMENT IN MARKETS ARE SUBJECT TO RISK" and this blog is for information purpose only.

Happy Investing


This post first appeared on Equity Portfolio Of Rakesh-Jhunjhunwala, please read the originial post: here

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Spice Jet Expansion to Focus on Growth and Profitability

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