Shares of budget carrier SpiceJet rose sharply in Thursday's trade, taking their winning run to the fourth consecutive session. The stock jumped 8.37 per cent to hit a day high of Rs 29 over its previous close of Rs 26.76. Around 33.18 lakh shares changed hands on BSE, which was more than twice compared to the two-week average volume of 14.53 lakh shares. Turnover on the counter stood at Rs 9.24 crore, commanding a market capitalisation (m-cap) of Rs 1,735.12 crore. There were 9,68,660 sell orders today against buy orders of 6,40,976 shares.
The sharp upward movement in the share price came after SpiceJet said that FTAI Aviation would provide the airline with up to 20 engines for lease. "The first few engines will be used to support the re-activation of SpiceJet's aircraft fleet over the next 2-3 months and will be critical for service on new routes," the Gurugram-based airline stated.
The partnership with the US-based engine services provider "will reduce maintenance expense and minimise aircraft downtime, enhancing the airline's overall performance," it added.
Ajay Singh, Chairman and Managing Director, SpiceJet said, "SpiceJet is slowly but surely progressing towards its goal of restoring its fleet and ensuring that our aircraft stay where they rightly belong to i.e. in the skies serving our passengers. Our partnership with FTAI Aviation is a step forward in that direction that would ensure that our fleet is up and running at all times without us worrying about engines or their maintenance."
Last month, SpiceJet had said it begun to revive 25 of its grounded fleet using its own money and a Rs 400 crore line of credit through a government scheme (Emergency Credit Line Guarantee Scheme) it secured.
The carrier had also said there were no plans to file for insolvency.
On the technical setup, the stock was last seen trading higher than the 5-day and 20-day moving averages but lower than the 50-day, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 82.69. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 15.74. It has a price-to-book (P/B) value of 4.51.
That said, the scrip has an average target price of Rs 806, Trendlyne data showed, suggesting a potential downside of 18 per cent. It has a one-year beta of 1.52, indicating low volatility on the counter.
Meanwhile, Indian equity benchmarks were trading higher today after Reserve Bank of India kept the key policy (repo) rate unchanged at 6.50 per cent in its June bi-monthly policy meeting. The domestic indices traded in the green in late morning deals, led by gains in banks, financials, metals and consumer durables.
Also read: Tata Communications shares upbeat outlook; stock price targets suggest most positives priced in
Also read: Paytm shares extend gains, jump 8% today; here's what brokerages say