SpiceJet shares jump 7% after it finalises settlement with lessor NAC

Shares of airline firm SpiceJet jumped 7% to Rs 29 in Wednesday's trade on BSE after the firm entered into a settlement agreement with Nordic Aviation Capital (NAC), a major lessor for its Q400 aircraft.

The agreement settles all past liabilities for the Q400s planes leased by NAC to SpiceJet. The airline presently operates five Q400 aircraft from NAC in its fleet.

After this settlement, "the airline will be inducting three additional Q400 aircraft from NAC back into its fleet. These three planes had been repossessed by the lessor. The induction of the three planes in addition to the fleet revival and restoration program launched by the airline would result in a substantial addition of planes in the SpiceJet fleet in the coming weeks," the airline said.

At 11.48 am, the scrip was trading 5% higher at Rs 29 on BSE. However, the stock has declined 26% year-to-date, while it has fallen 29% in the last year.

SpiceJet operates about 250 daily flights to 48 destinations within India and to international destinations. Its fleet is a mix of aircraft including Boeing 737 Max, Boeing 700, and Q400s.

As per Trendlyne data, the average target price of the stock is Rs 43, which shows an upside potential of 49% from the current market prices. The consensus recommendation from three analysts for the stock is a hold.

Technically, the stock's day RSI (14) is at 46.3. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed. MACD is at -0.6, which is below its Center Line, this is a bearish indicator.

The company's stock has a negative price-to-earnings (P/E) ratio of 0.84. It also has a negative price-to-book (P/B) value of 0.28.

The firm has a market cap of Rs 1,743 crore. SpiceJet promoters owned a 58.98% stake in the airline as on March 31.

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