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SpiceJet jumps on bargain hunting

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Capital Market
Last Updated : Dec 09 2014 | 12:35 PM IST

SpiceJet rose 4.26% to Rs 15.90 at 10:22 IST on BSE on bargain hunting after the stock slumped 28.24% in the preceding five trading sessions to Rs 15.25 on 8 December 2014 from a recent high of Rs 21.25 on 1 December 2014.

Meanwhile, the BSE Sensex was up 11.03 points, or 0.04%, to 28,130.43.

On BSE, so far 1.36 crore shares were traded in the counter, compared with an average volume of 59.94 lakh shares in the past one quarter.

The stock hit a high of Rs 16.90 and a low of Rs 14.30 so far during the day. The stock hit a 52-week high of Rs 22.20 on 26 May 2014. The stock hit a 52-week low of Rs 11.10 on 13 August 2014.

The stock had outperformed the market over the past one month till 8 December 2014, rising 2.14% compared with 0.90% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.01% as against Sensex's 2.93% rise.

The small-cap company has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.

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Shares of SpiceJet fell recently amid a flurry of negative news, including fund drought and large-scale flight cancellations.

Cash-strapped SpiceJet has reportedly cancelled over 1,800 flights across the country for the current month, in signs of mounting troubles for the budget airline. The air carrier, which is part of Kalanithi Maran-led Sun Group, has cancelled a total of 1,861 flights, a few to Kathmandu in Nepal and all others connecting domestic cities, till 31 December 2014, reports added.

Recent media reports suggested that the Airports Authority of India (AAI) withdrew credit facility relating to airport user fees to SpiceJet at all airports in the country from 4 December 2014, midnight. The move has been spurred by the mounting dues that the airline has to pay the AAI.

An airline is put on cash and carry mode when it is unable to clear its dues in the time specified by its vendor or when its dues mount beyond acceptable limit.

On 28 November 2014, Rare Enterprises, a company owned by well-known institutional investor Rakesh Jhunjhunwala, bought 75 lakh shares, or 1.25% stake, of SpiceJet at Rs 17.88 per share.

SpiceJet reported a net loss of Rs 310.45 crore in Q2 September 2014, lower than net loss of Rs 559.49 crore in Q2 September 2013. Net sales rose 15.2% to Rs 1435.86 crore in Q2 September 2014 over Q2 September 2013.

SpiceJet is India's second largest airline by domestic passenger share.

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First Published: Dec 09 2014 | 10:18 AM IST

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