Spicejet could reach Rs 175-180 in a year: Rahul Sharma

In the short term, the stocks has a good potential to reach the new target levels of Rs 125-130, says Rahul Sharma, Head of Technical Research, Equity99 Advisors.

How are you analysing Spicejet and what kind of people are investing there? What kind of numbers can we expect going forward?
Last evening we got to know that Spicejet has partnered with OM Logistics, which is one of the largest companies in India with the intent to effectively carry out the task of transporting the temperature sensitive Covid vaccine. This strategic partnership also created sustainable cold chain networks both domestically and internationally and with the fleet of 17 cargo planes of Spice Xpress, the cargo will be able to cover a large area of the distribution with the help of OM Logistics as they cater to 19,000 pin codes in India.

Also I would like to mention that recently Spice Xpress has introduced their new specialised service called Spice Pharma Pro having capabilities to transport extremely sensitive drugs in controlled temperatures ranging from minus 40 degree to 25 degree Celsius. Along with all this information, as the cargo business for such airlines creates a higher revenue and higher margins, the stock is ready to show a fresh high and technically also the charts are in favour of the rally. Though the stock has already had a huge run up of almost 100% from the lows in the last one month, it has a good potential to reach out to the new target levels of Rs 125-130 in the short term.

If one were to take a 6-12 months’ view, what kind of levels can we see in there?
The charts indicate that by keeping a horizon of one year, the stock has got a good potential to reach Rs 175-180.