Shares of low-fare airline SpiceJet Ltd surged over 65% in last one month on hopes that the airline will be able to increase capacity amid financial woes at Jet Airways. Analysts expect that if the troubles at Jet Airways linger, SpiceJet may lease more planes to grab a higher market share. The shares of SpiceJet advanced for the fourth consecutive session to hit a near 11-month high today. Since March 13, SpiceJet shares have surged 65.39%. At 9.50 am, the stock was trading at ₹129 a share – a level last seen on 2 May 2018 – up 7% from its previous close. Year to date, they are up 43%.
“As the Jet imbroglio continues, peers move quickly to cash in on scarce resources –slots/bilaterals/aircraft/trained manpower. SpiceJet is well placed – it is the only private airline to induct Boeing narrow-body aircraft and supporting infrastructure,” said SBICap Securities in a 15 April report. The brokerage firm has reiterated its “Buy” rating with target price of ₹175 a share.