Investment solution provider Anand Rathi Securities has come out with a report ‘SpiceJet: Flying high; initiating coverage, with a Buy’. The report says favourable macro-economic conditions have worked in the company’s favour.
“Plunging crude-oil prices, a sharper focus by the government, higher disposable income, cost-benefit advantage over the Railways are some of the key factors in the turnaround of the aviation sector,” it says.
Speaking to CNCBC-TV18, Mayur Milak, Anand Rathi Sec says the management change has been a key driver for SpiceJet . He has a target price of Rs 150 per
With SpiceJet reporting net profit at Rs 238 crore for the quarter ended December 2015 (Q3FY16) against a loss of Rs 275 crore a year ago, this is the fourth straight profitable quarter for the company.
Furthermore, he is of the view that SpiceJet may catch up to the valuations of Interglobe Aviation ( Indigo) going forward.