SpiceJet Shares Hit Fresh 52-Week High Today, Surges 27% In 3 Days; Details – News18

Last Updated: November 23, 2023, 14:19 IST

SpiceJet shares continued their strong upward move for the third straight session on Thursday. Shares of the budget carrier hit a 52-week high of Rs 48.38, up 10 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes in an otherwise range-bound market. The stock of airline company was trading higher for the third straight day, surging 27 per cent during the period.

The counter has gained 26.95 per cent in the past one month and 82.33 per cent in six months.

SpiceJet, low-cost carrier, operates a fleet of Boeing 737s & Q-400s and is one of the country’s largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India.

SpiceJet, named VS MSN 36118 CAY Designated Activity Company, on November 21 moved the Delhi High Court to execute a decree it obtained in the United Kingdom in June 2023 against the airline.

The lessor seeks to recover an amount of Rs 90 crore from SpiceJet by executing the judgment of the UK court. The HC has sought the airline’s response to the plea and the case is likely to come up for hearing in February.

VS MSN 36118 CAY Designated Activity Company, represented by senior advocate Rajshekar Rao and lawyer Anandh Venkatramani also asked the court to restrain SpiceJet from using their aircraft, however, the court did not pass any such orders for the time being. The court has permitted the lessor to inspect the aircraft and check if it is maintained properly.

Senior advocate Amit Sibal, who appeared for SpiceJet told the court that the airline will regularise its lease rent payments to the lessor from December.

SpiceJet entered into a lease with VS MSN 36118 CAY in 2018 for a Boeing 737-700. The tenure of the lease was 96 months, which was supposed to expire in 2023. According to the lessor, SpiceJet defaulted on its payments periodically from November 2020. Thus the lessor moved a plea in the United Kingdom for payment of dues and also claimed for future rental said to have become due upon an event of default.

The court in the UK awarded both past rent dues and future rent close to $ 5.89 million.

On technical setup, support on the counter could be seen at Rs 38 and resistance may be witnessed around the Rs 48-odd zone. An analyst suggested booking profits at current levels.

Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, said “SpiceJet has gained traction in the last couple of trading months. The counter is placed at the crucial juncture of resistance at Rs 43-45 sub-zone. A decisive breakthrough could only trigger momentum. On the downside, immediate support lies around Rs 38, below which the counter may plunge to Rs 34. It is advisable to have a cautious approach keeping a close tab on the mentioned levels.”

The scrip has an analyst target price of Rs 38, Trendlyne data showed, suggesting a potential downside of 12 per cent in a year. It has a one-year beta of 0.3, indicating low volatility on the counter.

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