SpiceJet’s market value per share: “Enhanced surveillance with immediate effect” has been imposed on SpiceJet surveillance ,according to a statement released by the Directorate General of Civil Aviation (DGCA). The decision has been made to enhance nighttime monitoring and spot checks in order to maintain the safety requirements of the airline’s operations.
SpiceJet Ltd.’s stock saw a significant decline in Friday’s trading following the budget carrier’s immediate placement under “enhanced surveillance” by aviation regulator DGCA. The stock fell 6.39 percent from its previous close of Rs 66.23 to a day low of Rs 62.
“Enhanced surveillance with immediate effect” has been imposed on SpiceJet, according to a statement released by the Directorate General of Civil Aviation (DGCA). The decision has been made to enhance nighttime monitoring and spot checks in order to maintain the safety requirements of the airline’s operations.
Given SpiceJet’s historical performance and the findings of the August 2024 special audit, the airline has once again been placed under increased surveillance, effective immediately. To ensure the safety of operations, this would require more spot checks and nighttime surveillance, according to a release from the DGCA.
The airline’s engineering facilities were the subject of a special assessment by the DGCA on August 7 and 8, which revealed some shortcomings.
Recall that in 2022, following several incidents on the SpiceJet fleet, a special drive of spot checks was conducted. During this time, SpiceJet was only allowed to release aircraft for operations once they had verified to the DGCA that all reported defects/ malfunctions had been fixed. Based on information that the airline was experiencing financial difficulties, it was once more put under increased surveillance in 2023,” the statement continued.
SpiceJet, which is struggling financially, has run into issues with a number of airports as well as aircraft lessors. The airline has encountered problems with timely wage disbursements and is presently in the process of acquiring capital through a qualified institutional placement (QIP) route.
The airline announced a 19.65% decrease in consolidated earnings for the first quarter of FY25, which ended in June 2024. In Q1 FY25, the carrier’s profit was Rs 158.75 crore, down from Rs 197.58 crore in the same period last year.
The airline’s operating revenue also suffered in Q1 FY25, falling 14.15% to Rs 1,646.21 crore from Rs 1,917.43 crore in the same time the previous year.
Technically, the shares moved up against the 5-day SMA but down against the 10-, 20-, 30-, 50-, 100-, 150-, and 200-day SMAs. The relative strength index (RSI) for the stock after 14 days was 46.98. Oversold is defined as a level below 30, and overbought is defined as a value beyond 70.
As per BSE, the carrier’s stock has a negative price-to-equity (P/E) ratio of 12.83 against a price-to-book (P/B) value of (-)2.03. Earnings per share (EPS) stood at (-)5.16 with a return on equity (RoE) of 15.83.
Around 54.08 lakh shares were last seen changing hands today on BSE. The figure was lower than the two-week average volume of 77.16 lakh shares. Turnover on the counter came at Rs 34.10 crore, commanding a market capitalisation (m-cap) of Rs 4,947.83 crore.
As of June 2024 quarter, promoters held a 47.66 per cent stake in the airline.
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