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On 26 May 2025, SpiceJet's stock took off nearly 1.9 per cent after the Delhi High Court dismissed a long-running Rs 1,300 crore damages appeal brought by former promoter Kalanithi Maran and KAL Airways.
Why the sudden jump in share price?
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The dismissal of the damage claim worth nearly Rs 1,300 crore removes a potential cash drain and frees up management bandwidth.
- Another Boeing 737 NG returned to service on 9 May, nudging capacity higher for the peak summer season.
What does it mean for investors?
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Relief, not rescue:
The court win takes a legal overhang off the table, but it doesn't fix SpiceJet's negative cash flow or fuel-price sensitivity.
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Valuation remain tricky:
The company has no meaningful P/E because trailing earnings are patchy. At nearly 1.4 times sales, the stock prices are already in a fair chunk of a turnaround.
- Watch these gauges: Funds raised via the Rs 3,000 crore QIP, pace of aircraft un-grounding and ability to keep load factors above 85 per cent without cutting yields.
About SpiceJet
Gurgaon-based SpiceJet Limited is India's second-oldest listed low-cost carrier. The airline serves 60 domestic and 13 international destinations with a mixed fleet of Boeing 737s and Bombardier Q400 turboprops. It also runs a cargo arm, SpiceXpress.
Here's how its fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 6,352 crore |
| P/B ratio | -2.8 |
| Book value | -Rs 16.2 |
| EPS | Rs 0.2 |
The takeaway
SpiceJet just scored a rare legal win, giving bulls some hope. Yet the airline is still flying on slim fuel reserves, figuratively and literally. Unless management locks in fresh equity, reins in costs and keeps jets flying full, today's pop could prove another short hop rather than a sustained climb.
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