Buy SpiceJet; target of Rs. 65: Angel Broking
Tuesday, 22 June 2010, 21:21 IST
By SiliconIndia
By SiliconIndia
Mumbai: Angel Broking is bullish on SpiceJet and has recommended buy rating on the stock with a target of Rs. 65, valuing the stock at 9x FY2012E Earnings of Rs. 7.2 in its June 19, 2010 research report. Spicejet has moved from Rs. 16.10 to Rs 60.35, a return of whopping 73 percent in last one year.
SpiceJet is an India-based airline company. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company started its cargo operations. As of March 31, 2009, its cargo operations covered 13 stations, including Delhi, Hyderabad, Chennai, Bangalore, Kolkata, Kochi and Goa. In fiscal 2009, SpiceJet operated 125 daily flights. Moreover, the company expects to add four aircraft in the current fiscal, which will further bolster revenues for the year.
Shares of Spicejet have climbed almost 6 per cent from June 10, when reports of stake sale by the company surfaced, till date. At Rs. 55, the stock is trading at 10.9x FY2011E and 7.6x FY2012E Earnings.
Angel Broking believes that SpiceJet is well placed to benefit from a reviving economy, which has led to an increase in passenger traffic demand, and which is expected to remain robust over FY2010-12E.
SpiceJet is an India-based airline company. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company started its cargo operations. As of March 31, 2009, its cargo operations covered 13 stations, including Delhi, Hyderabad, Chennai, Bangalore, Kolkata, Kochi and Goa. In fiscal 2009, SpiceJet operated 125 daily flights. Moreover, the company expects to add four aircraft in the current fiscal, which will further bolster revenues for the year.
Shares of Spicejet have climbed almost 6 per cent from June 10, when reports of stake sale by the company surfaced, till date. At Rs. 55, the stock is trading at 10.9x FY2011E and 7.6x FY2012E Earnings.
Angel Broking believes that SpiceJet is well placed to benefit from a reviving economy, which has led to an increase in passenger traffic demand, and which is expected to remain robust over FY2010-12E.
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