SpiceJet zooms up

DALAL STREET SPIKES

SpiceJet (formerly known as Royal Airways) spurted 9.8 per cent on back of strong volumes. The stock closed at Rs 70.15 with volumes accounting for more than 35.5 lakh shares on the BSE.

Source said, the stock has been accumulated by select domestic funds, adding that post-Jet Airways issue, the stock has been re-rated by a host of broking firms.

In Wednesday's trading, the stock appreciated on back of announcement that it will commence its airlines operations from May 23. The airline will fly to six destinations - New Delhi, Mumbai, Goa, Bangalore, Pune and Ahmedabad - and will initially use three Boeing 737-800 planes with an all economy, 189-seat configuration. The stock has a dream run at the bourses of late. From a low of Rs 34 on January 1, 2005, the stock has appreciated to Wednesday's close of Rs 70.15.

The company, however, has reported a loss in the previous quarter. For the quarter ended February 28, 2005, the company posted a loss of Rs 2.95 crore as against a net profit of Rs 1.84 crore on a total income of Rs 0.21 crore.