Synopsis: The stock of Spicejet limited is currently moving up more because of price action and its “beaten down” status, rather than its fundamentals. It has hit 5 continuous upper circuits in the last 5 days and is currently trading at Rs 14.14
The stock of Spicejet Ltd has hit 5 continuous upper circuits in the last 5 days and is currently trading at Rs 14.14. It made a low of Rs 9.74 on 30th March and has recovered over 45% since then.
Spicejet shares have crashed significantly in the last one year due to multiple reasons including continuous financial stress, challenges including lease disputes, fleet constraints, and loss of market share, and a UK court’s order of an $8M payout to an aircraft engine lessor on unpaid dues. Moreover, the surge in crude oil pricing has also adversely affected the aviation industry.
The company’s market share has continuously declined in recent years with competitors like Indigo, Air India, and Akasa rising significantly in the aviation sector. Spicejet has a 52-week high of Rs 56.8 and has declined over 74% from its 52-week high to the current price. Its 5-year high is Rs 80.6.
The stock of Spicejet Ltd is currently moving up more because of price action and its “beaten down” status, rather than its fundamentals.
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