Follow me on Twitter

Friday, December 14, 2007

SPICEJET

Prabhudas Liladhar has initiated ‘buy’ on the stock for target Rs 84. SpiceJet is the most efficient low cost player in the industry. With a fleet size of 11 in 2006-07 and passenger load factor of about 77 per cent, the company has a market share of about 8 per cent. SpiceJet's identical fleet configuration (all B737-800s) helps reduce its operational costs. Also, the absence of food on board helps it achieve a better turnaround. Irrational pricing prevalent in the industry a couple of years back has largely ceased. With improving yields and the lowest cost per ASKM in the industry, Spice is poised for a turnaround. The company has also started focusing on ancillary revenue to further boost sales. The share of ancillary revenue is expected to go up to 10 per cent (from 7-7.5 per cent earlier) in 18 months. Prabhudas expects the company to achieve profitability in 2008-09. SpiceJet is currently trading at 2.0 times 2008-09 estimate and 1.7 times 2009-10 estimated adjusted enterprise value per sales, which appears attractive for a growing company. Prabhudas expects topline to grow at 64 per cent CAGR over the next three years to Rs 2,823.9 crore by 2009-10 and achieve profit after tax of Rs 76.1 crore (from a loss of Rs 70.8 crore in 2006-07). source : Economic Times

21 comments:

sandy said...

Hii Brother? how are u ? Loocing Hot and new Script on ur Site ?so m loocing forward to buy spicejet on monday.

deepil2003 said...

hi,
i am unable to understand it is a buy or wait till ur buy call kindly tell us bcoz u quoated prabhudhar liladas "s view what is ur stand we should buy this scrip or not
waiting for ur reply
sincerely
deepil2003

jignesh said...

hi what is your call on Shree Digvijay Cement @38.50 & Gujarat Apollo Ind.@267 pl shall i hold for medium term or sell

jignesh said...

hi what is yr call for GTL infra, TVS Motor & KS Oils i am holding it for last one month, hold further

MANOJ said...

Hi Superstar, I came to know abt ur blog from one of my frd. I have a query. I have 300 RPL shares with effective buying price of Rs. 230. Should I hold or leave at current leve, as dont see much positive movement? For your info, on ur advise I have bought 100 Gucci Bio. Hope it will turn nice.

MANOJ said...

Hi Superstar, I came to know abt ur blog from one of my frd. I have a query. I have 300 RPL shares with effective buying price of Rs. 230. Should I hold or leave at current leve, as dont see much positive movement? For your info, on ur advise I have bought 100 Gucci Bio. Hope it will turn nice. Sorry I put the question under wrong head "Spicejet".

sajjan said...

hi,
what co incidence, i have been tracking this stock. this has already given me good gains in the past (had bought it at around 48) . i dont hold
it now, but looking at your post, i am confident of buying it again...thanks man

Pawan said...

Hi Superstar,I got to know about your website today only.I track 3-4 people on moneycontrol and you are one of them.Thanks for all your help to small investors.

Superstar said...

Hi Deepil,

There is a lot of buzz in the market regarding Spicejet. Technically also, the charts are showing signs of a breakout. Fundamentally, the bottomline of the company is improving and the company should be in profits soon. Barring unforeseen circumstances, I would BUY this stock with a two year target of 150 plus. (It could happen much earlier also)

Hi Manoj,

RPL has moved a lot over the last couple of months and needs some time to consolidate. I don't expect much big movement in that stock in the very short term, although it can be good for the long term. If you are a short term player, then you can find much better opportunities of making quick money in the markets than this one.

Hi Jignesh,

I've posted my views on KS Oils recently elsewhere on this site. Pls make the effort to search for it. Lately, I have been getting a lot of queries on stocks which are unrelated to the topic and I am finding it difficult to answer all of those due to time constraints.

Cheers!

Harb said...

Hello superstar! It is Harb here. How are you? Belated Happy Birthday! What is your latest contact email? You know mine, reply to me there. I also want to earn some money thanks to you. What are your latest midcap recommendations if you will pl?

shashjpn said...

Hi Superstar ji, pls advice on GRANUL,Biocon and other good pharma stocks this times ?

Superstar said...

Hi Harb,

Thanks for the Birthday wishes. My email is the same as you have with you. My last two recommendations have been Gufic Bioscience and Spicejet. Keep checking this site regularly for hot stock ideas.

Hi Shashjpn,

Granules and Biocon look fairly valued to me at their current EPS or maybe there is room for an upside of another 12-15% from current prices in the short term. Maybe I'll post more attractive picks in this sector on this site in some time.

Cheers!

monica said...

Hi Superstar,
Thanks for your reco in Spicejet. Got 100 today. Hope it zooms up as per your expectations. Can it cross 100 in medium term.
Your ardent admirer,
Monica.

chandrakant said...

gey thanks a lot abt the call on spicejet bought 500@ 59 in yest fall today 71... i dnt no whether ur tracking auto stocks can u gve me ur views on ashok leyland?
thanks once again

Booshan said...

Hi SuperStar,
I have a query. I have 150 IFCI shares with effective buying price of Rs. 102. Should I hold or sell it...please advice.

Thanks in advance

Booshan said...

Hi SuperStar,
I have a query. I have 150 IFCI shares with effective buying price of Rs. 102. Should I hold or sell.

Thanks Superstar

Superstar said...

Hi Monica,
Spicejet hit a high of 104 on 8th Jan, 2008. Hope you are happy with its performance.

Hi Bhooshan,
Sorry for the delay response. I completely forgot about this thread. I would have sold IFCI above 100 long time back.

Hi Chandrakant,
I would not buy Ashok Leyland at current price. I think it is fairly valued and not much chance of upside. There are much better buys in the market.

Cheers!
Cheers!

N Mehta said...

Hi ! Whats ur outlook on Phoenix Lamps ? & regards to ur calls if U can also give liquidation value of the cos. assets in a bad scenario it would be gr8.

N Mehta said...

What is the liquidation value per share of the co. SpiceJet ? The share is at 44.5.

Furthermore, some doubts remain of why the promoter is having such low holdings ?
Aviation sector is not a profitable one, but just imagine one thing in trains one has to book tickets about 1 month in advance or sometimes 6 months in advance if you have to travel during a peak season + just 2% or less of India's population travels at the moment by flight.

N Mehta said...

Can u please explain the Spicejet business numbers in details in their current state ? thank u. Sincerely. N

N Mehta said...

I guess V all understand numbers from here. :-)