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This article is more than 2 year old.

This stock turned Rakesh Jhunjhunwala's Rs 13 crore investment in 2014 into Rs 102 crore in 2019

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SpiceJet, which has been a long-term bet of Rakesh Jhunjhunwala, has delivered strong returns in the last 5 years. The airline stock has advanced over 600 percent during this period from a stock price of Rs 19.10 in 2014 to Rs 137 currently.

This stock turned Rakesh Jhunjhunwala's Rs 13 crore investment in 2014 into Rs 102 crore in 2019
SpiceJet, which has been a long-term bet of Rakesh Jhunjhunwala, has delivered strong returns in the last five years. The airline stock has advanced over 600 percent during this period from a stock price of Rs 19.10 in 2014 to Rs 137 currently.
The SpiceJet stock has delivered 618 percent returns during the last five years. Its share price has risen 54 percent since the beginning of this year and gained 23 percent during the last one year.
In November 2014, Jhunjhunwala bought 75 lakh shares in his portfolio for Rs 17.88 per share at Rs 13.4 crore. 75 lakh shares at the current stock price will be valued at Rs 102.75 crore.
At the end of March quarter, shareholding pattern of the company showed Jhunjhunwala holding 75 lakh shares of the firm amounting to a stake of 1.25 percent in the carrier.
For Q4, SpiceJet net profit rose 22 percent to Rs 56.29 crore from Rs 46.15 crore a year ago. The airline, however, reported a full-year loss for 2018-19 at Rs 316.08 crore. It had reported a profit of Rs 557.20 crore in 2017-18.
"SpiceJet has posted a strong recovery in last two quarters after suffering a loss of Rs 427.5 crore in the first two quarters due to a steep increase in fuel costs and sudden depreciation of the rupee," Ajay Singh, chairman and managing director, SpiceJet was quoted as saying in a statement.
The air carrier is aggressively expanding fleets and adding routes to benefit from the collapse of Jet Airways (India). It recently announced the induction of a Boeing 737, taking its fleet size to 100 aircraft. It is the fourth domestic airline to achieve the feat after national carrier Air India, now defunct Jet Airways and rival IndiGo.
The airline also hired staff, including pilots and cabin crew, of the defunct Jet Airways as the no-frills carrier continues to expand its operations. The airline has taken at least 22 planes that were earlier used by Jet Airways, which temporarily shuttered its operations due to cash crunch in April.
According to Elara Capital, SpiceJet is their top pick in the aviation space based on its aggressive strategy of adding 60 aircraft in FY20E during a supply-constrained environment. This would bolster the company’s market share by 5-6 percent, it added.
Spicejet in a release said it has added 23 planes in the last one month alone. The airline at present operates 575 daily flights on an average to 62 destinations, 53 domestic and nine international.
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