Sunday, January 31, 2016

Buy SpiceJet



Investors looking for a smart return over next 1 year should look at investing in this small cap scrip.Starting from the low of Rs.24 the share price went to scale 52 week high of Rs.94 and is now correcting.

Investment rationale :
  1. Upcoming aggressive push
  2. Reduction of Rs.1200 crore debt
  3. Profit of Rs.275 crore in recent quarter
  4. Low aviation fuel cost
  5. High profitability
  6. Strong and aggressive management
Returns in the last 1 year

on 
1 week  |  1 month  |  3 month  |  1 year  |  2 year
 1 YEARCURRENT%GAIN / LOSS
Open Price22.0090.70 
High Price22.2090.90 
Low Price21.5085.65 
Last Price21.8087.30300.46
Volume4,447,62718,483,204315.57















The scrip gave a 3x return compared to last year price of Rs.24

Recommendation :

The company share price is trading near to the highest recorded recently and there is plenty of steam still left in this scrip.

Buy Range - Rs. 75-86
Holding period - 12 to 15 months
Returns - 60 - 70%

We strongly recommend a buy on the scrip on dips.  The only negative for the scrip is that it is not listed on NSE which can happen once the company decides to list there too.

Raghav

Smart Investor - Equity Research

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