Edelweiss maintains buy on SpiceJet, target price Rs 160

Edelweiss has maintained buy rating on SpiceJet in the long term with a target price of Rs 160. The stock ended down 1.1% at Rs 107.65 on Thursday while BSE Sensex closed 70.70 points down at 40,779.59.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2761.51 crore, down -5.51% from last quarter sales of Rs 2922.54 crore and up 49.75 % from last year same quarter sales of Rs 1844.08 crore. The company has reported net profit after tax of Rs -461.22 crore in the latest quarter.


The company’s top management includes Mr.Ajay Chhotelal Aggarwal, Mr.Ajay Singh, Mr.Anurag Bhargava, Mr.Manoj Kumar, Mrs.Shiwani Singh. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2019, the company has a total of 599,718,356 shares outstanding.

Investment Rationale

The brokerage is enthused by the management’s plans to improve profitability and expects significant boost as SpiceJet replaces older 737 NG with 15% higher fuel efficient and lower maintenance cost Max planes in the fourth quarter of FY20. The brokerage expects SpiceJet to overtake IndiGo in passenger growth with takeover of Jet's aircraft.