SpiceJet shares extend gains, climb 4% today; here's why

Shares of budget carrier SpiceJet Ltd continued their upward move for the second consecutive session in Monday's trade. The stock rose 4.26 per cent to hit a day high of Rs 59.29. It was last seen trading 3.25 per cent up at Rs 58.72. At this price, the scrip has shed 3.17 per cent on a year-to-date (YTD) basis compared to an 11.39 per cent gain in benchmark BSE Sensex during the same period.

Today's upmove in the share price came after the airline announced 32 new flights for its winter schedule. "SpiceJet is thrilled to announce the launch of 32 new flights for the winter schedule beginning October 27, 2024. With 30 of these flights operating in the domestic sector and two connecting Delhi to Phuket with daily non‐stop service, SpiceJet aims to enhance connectivity and provide travellers with more options," it stated.

"The winter schedule will feature exciting new routes, including four new flights from Mumbai to Patna, Gorakhpur, Varanasi, and Goa. The airline will connect Patna to Ahmedabad, Guwahati, Kolkata, and Bengaluru; Chennai to Port Blair and Pune; Delhi to Phuket, Amritsar, Gorakhpur and Kolkata to Port Blair," the carrier added.

Debojo Maharshi, Chief Business Officer at SpiceJet, said, "As we continue to grow our fleet and operations, we will be adding more flights in the coming weeks. We look forward to welcoming passengers on board as we continue our journey towards a more robust fleet and service delivery."

SpiceJet has announced the induction of 10 planes to its fleet by November. The airline said it anticipates adding even more flights in the coming weeks to cater to passenger needs further.

The fleet expansion mode follows SpiceJet's successful qualified institutional placement (QIP), which raised Rs 3,000 crore.

Separately, aviation regulator DGCA (Directorate General of Civil Aviation) has removed the airline from enhanced surveillance, but it will continue to carry out spot checks to ensure flight safety.

SpiceJet was placed on heightened surveillance on September 13 following sporadic disruption in flight services due to non-payment of dues to service partners.

Technically, the scrip traded higher than the 5-day simple moving average but lower than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 45.08. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative price-to-equity (P/E) ratio of 15.71 against a price-to-book (P/B) value of (-)2.82. Earnings per share (EPS) stood at (-)3.62 with a return on equity (RoE) of 17.95. Promoters held a 29.13 per cent stake in SpiceJet during the September 2024 quarter.