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Spicejet Ltd Stock Analysis

Small Cap
Evaluated by 3210 users | BSE: 500285 | NSE: SPICEJET |
Airlines

Royal Airways-promoted SpiceJet is an airline company, which was earlier known as Modiluft. It was among the first private companies that stepped into the Indian aviation sector. Further, in May 2005 Royal Airways changed its name to SpiceJet. The airline was...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Spicejet Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 42.29%-89.14%-11.33%-80.07%-116.86%175.8%126.09%72.38%-11.35%-355.45%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,8773,9435,6016,3045,2435,0886,1917,7569,11312,359
Y-o-Y Gr. Rt.-37.1%42%12.6%-16.8%-3%21.7%25.3%17.5%35.6%
Adjusted EPS (Rs.) 2.42-13.65-4.54-18.97-12.717.066.649.48-3.82-14.96
Y-o-Y Gr. Rt.--664.1%NANANANA-6%42.8%-140.3%NA
Book Value per Share (Rs.) 7.79-3.43-5-19.73-26.99-17.34-10.16-0.74-5.95-26.54
Adjusted Net Profit 98.3-603-220-1,015-762423398568-229-898
Net Op. Cash Flow (Rs. Cr.) -45.5-105-53.859-4117114961,0464561,842
Debt to Cash Flow from Ops -1.87-9.58-33.4928.98-3.61.732.331.252.430.6
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Spicejet Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17.6%18.7%25.9%35.6%
Adjusted EPS -222.4%NA-231.1%NA
Book Value per Share -214.6000
Share Price 9% -0.7% -20.3% 47.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -932.89-693.31118.39166.5773.23-39.86-48.32-174.31116.493.02
Operating Profit Margin (%) 2.4-14.92-3.48-13.43-11.711.189.3110.531.110.37
Net Profit Margin (%) 3.42-15.29-3.93-16.1-14.538.326.437.33-2.51-7.26
Debt to Equity 0.27-6.65-7.45-1.62-0.91-1.18-1.9-29.43-3.11-0.69
Working Capital Days 7388636167706779108109
Cash Conversion Cycle -24-26-30-34-50-58-35-25-27-31
Entity Percentage Holding
Promoters 59.89%
Institutions 8.63%
Non-Institutions 31.48%
Pledged *44.1539.3439.3439.3439.3644.0144.0144.0143.9043.90
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Spicejet Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Spicejet Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Spicejet Ltd's performance infers:

Spicejet Ltd earnings have grown by 0%, whereas share price has depreciated -0.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Spicejet Ltd share prices over the last 10 years. Here is what we found out:

Spicejet Ltd share price has depreciated 4.4% annually over the past ten years.

Royal Airways-promoted SpiceJet is an airline company, which was earlier known as Modiluft. It was among the first private companies that stepped into the Indian aviation sector. Further, in May 2005 Royal Airways changed its name to SpiceJet. The airline was launched with an objective to deliver the lowest air fares with the highest consumer value, to price sensitive consumers. SpiceJet follows the Low Cost Carrier (LCC) business model on the lines of the

Royal Airways-promoted SpiceJet is an airline company, which was earlier known as Modiluft. It was among the first private companies that stepped into the Indian aviation sector. Further, in May 2005 Royal Airways changed its name to SpiceJet. The airline was launched with an objective to deliver the lowest air fares with the highest consumer value, to price sensitive consumers. SpiceJet follows the Low Cost Carrier (LCC) business model on the lines of the most successful LCCs globally and provides the lowest cost per unit amongst Indian LCCs.

SpiceJet has chosen a single-aircraft-type fleet, which allows for greater efficiency in maintenance, and supports the low-cost structure. And when it came to selecting this single aircraft fleet, SpiceJet has opted for the new-generation Boeing 737-800s with winglets and Boeing 737-900ER. These aircraft allow for safe, comfortable and efficient flying and are ideally suited for short to medium-haul flights in Indian conditions. SpiceJet's new generation fleet of 15 Boeing 737-800 / 737-900ER aircraft are backed by cutting-edge technology and infrastructure to ensure the highest standards in safety and operating efficiency.

Business area of the company

The company is engaged in the business of scheduled air transport services for the carriage of passengers and cargo.

Awards

2015-16

  • SpiceJet was awarded the 4th National Award for the year 2016
  • The Company received the World Travel Leaders award at the WTM (World Travel Market) Awards in London

2016-17

  • SpiceJet was conferred with the CAPA Chairman’s Order of Merit for fastest turnaround in FY 2016
  • Voted as ‘Best Transportation’ brand and ‘Best Airline’ brand 2016 in India by Brand Trust Report
  • ‘Most Outstanding Global Aviation Turnaround’ award at IIIrd Travel & Hospitality Awards organized by Travel and Hospitality (TnH) Magazine on April 14, 2017 at The Imperial, New Delhi
  • ‘Rising like a Phoenix’ PR campaign rated amongst the 40 best PR campaigns in the world in 2016 at the Global SABRE Awards
  • ‘Best Employee Engagement’ 2016 at the 4th DMAThomas Associates National Award
  • SpiceJet received ‘Asia’s Greatest Brands -2016’ award at the Asia One Awards

2017-18

  • Global ‘Low-Cost Leadership Award’
  • Best Domestic Airline Award at the Wings India Awards for excellence in aviation sector
  • Best Domestic Airline Award at the 4th West India Awards
  • 2017 Best Corporate Governance India Award by Capital Finance International
  • Best In-Flight Asia-Pacific Award for Interior Retrofit Project in association with STG Aerospace at the Inflight Asia-Pacific Awards

2018-19

  • ASSOCHAM 12th International Conference-cum-Awards
  • Airline Strategy Awards 2018
  • US-India Strategic Partnership Forum Leadership Award
  • ASSOCHAM 11th International Conference-cum-Awards
  • BML Munjal Award 2018
  • Times Travel Awards 2018

2019-20

  • Asia Pacific Airline Executive of the Year Award 2019 by CAPA - Centre
  • Best Domestic Low Cost Airline Award 2019 at the 12th ASSOCHAM International Conference cum Awards on Civil Aviation & Cargo
  • Best Domestic Airline Award 2018 at the 11th ASSOCHAM International Conference cum Awards on Civil Aviation & Cargo
  • Low-Cost Leadership Award by Flight Airline Business in London
  • USISPF Leadership Award in Washington DC
  • Editor’s Choice Award for best domestic low cost airline at the Times Travel award
  • BML Munjal Awards 2018 for ‘Business Excellence through Learning and Development’
    Best Airline operating under the government’s Regional Connectivity Scheme (UDAN) by APAI.
  • Best Domestic Airline Award at the prestigious Wings India Awards for Excellence in the aviation sector organised by the Ministry of Civil Aviation, Government of India and FICC

Milestones

2013

  • Spicejet Ltd. - Spicejet and Tigerair to strengthen India - Singapore links via interline
  • SpiceJet introduces low-cost Sharjah- Lucknow flight
  • SpiceJet to fly Pune-Sharjah flights from Sept. 21
  • SpiceJet flies high on tie up with Singapore & 39 s Tigerair scrip zooms over 12%

2014

  • SpiceJet offers festival season sale
  • SpiceJet launches Rs 499 & Early Bird &rsquo offer
  • SpiceJet runs into more turbulence, flights grounded
  • SpiceJet extends Rs 1,999 monsoon offer pan-India -JPMorgan, Singh plan to invest $200 mn in SpiceJet

2015

  • SpiceJet launches new mobile app for customers
  • SpiceJet launches the ‘Happy New Year Sale’
  • SpiceJet flags-off direct flight to Dubai from Amritsar.
  • SpiceJet announces direct flight from Chennai to Bangkok
  • SpiceJet initiates major network expansion with six new aircraft

2016

  • SpiceJet introduces new flights from Kolkata starting Oct 4
  • SpiceJet offers tickets starting at Rs 888 for festive season

2017

  • SpiceJet signed an agreement to buy 50 Bombardier Q400 turboprop planes to expand operations on regional routes linking small cities and towns.
  • SpiceJet announces its 7th international destination
  • SpiceJet partners with HSBC India to offer payments via UPI
  • SpiceJet takes off on UDAN routes

2018

  • SpiceJet inducts Leh on its pan India network
  • SpiceJet launches dedicated air cargo services on domestic and international routes Inducts its first Freighter Aircraft
  • SpiceJet signs MoU with Afghanistan Chamber of Commerce & Industries
  • The Company inducted first Boeing 737 MAX aircraft
  • SpiceJet adds Lilabari as its tenth destination under UDAN

2019

  • SpiceJet introduces Jeddah as its ninth international destination
  • SpiceJet receives IATA Operational Safety Audit (IOSA) certification
  • SpiceJet launches 10 new UDAN flights
  • SpiceJet first Indian LCC to join IATA
  • SpiceJet and Emirates seal codeshare deal
  • The induction of 100th aircraft - a Boeing 737 - to the fleet.

2020

  • SpiceJet introduces dedicated freighter services to boost India’s shrimp farming
  • SpiceJet signs tripartite MoU with GHIAL & Ras-Al-Khaimah International Airport for a dedicated freight corridor
  • SpiceJet adds Cambodia to its international cargo network
  • SpiceJet gets permission to conduct drone trials
  • SpiceJet launches dedicated cargo flights to Leh ensuring timely & seamless supply of essentials during winters
  • SpiceJet adds Ranchi to its domestic network

2021

  • SpiceJet introduces 21 new domestic & international flights
  • SpiceJet ties-up with Brussels Airport for seamless delivery of Covid-19 vaccine between India and Europe and beyond
  • SpiceJet ties-up with Adani Ahmedabad International Airport Limited for seamless delivery of Covid-19 vaccine
  • SpiceJet adds two more wide-body aircraft to its cargo fleet
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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