Prabhudas Lilladher's research report on SpiceJet
SJET continues to benefit from its strong presence in high yielding regional market, as it reported a strong 20% growth in revenue to Rs24.9bn led by 16% growth in Available Seat Kilometers (ASK) and 4% increase in Yields. However, high fuel cost (Fuel CASK up 31%) and depreciating INR (up 11%) dampened profits to Rs551mn. SJET continues to outperform the market leader IndiGo in terms of RASK (Rs4.4 vs Rs3.7) We continue to remain positive on SJET as we believe it is well placed to benefit from the booming Indian aviation market given its strong presence in regional markets, large order book of fuel efficient aircrafts and long terms maintenance contract in place.
Outlook
We expect a CAGR of 21%/11% in Revenue/EBITDAR respectively over the next three years and value the stock at 8x FY21E adj. EV/EBITDAR. Maintain BUY with a TP of Rs107
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Read More First Published on Feb 12, 2019 04:33 pm
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