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SpiceJet Ltd

NSE: SPICEJET BSE: 500285

12.92

(1.65%)

Thu, 21 May 2026, 05:30 pm

SpiceJet Analysis

dividend

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Pros

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    Cons

    • No need to calculate the sustainability of SpiceJet's dividends in 3 years as they are not expected to pay a notable one for India.
    • Unable to evaluate SpiceJet's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate SpiceJet's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

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      Cons

      • SpiceJet is not considered high growth as it is expected to be loss making for the next 1-3 years.
      • Unable to compare SpiceJet's earnings growth to the India market average as it is expected to be loss making during the next 1-3 years.
      • Unable to compare SpiceJet's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
      • SpiceJet is expected to be loss making next year.
      • SpiceJet's is expected to be loss making in 2 years.
      • SpiceJet's revenue is expected to decrease over the next 2 years.
      • SpiceJet's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
      • SpiceJet's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

      health

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      Pros

      • Whilst loss making SpiceJet has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39% per year.
      • Whilst loss making SpiceJet has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
      • Debt is well covered by operating cash flow (113%, greater than 20% of total debt).
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      Cons

      • SpiceJet's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
      • SpiceJet has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
      • SpiceJet's long term commitments exceed its cash and other short term assets.
      • Irrelevant to check if SpiceJet's debt level has increased considering it has negative shareholder equity.
      • SpiceJet has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
      • High level of physical assets or inventory.

      management

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      Pros

      • The tenure for the SpiceJet board of directors is about average.
      • Ajay's remuneration is lower than average for companies of similar size in India.
      • The average tenure for the SpiceJet management team is over 5 years, this suggests they are a seasoned and experienced team.
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      Cons

        misc

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        Pros

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          Cons

          • SpiceJet is covered by less than 3 analysts.
          • SpiceJet has significant price volatility in the past 3 months.

          past

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          Pros

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            Cons

            • Unable to compare SpiceJet's 1-year earnings growth to the 5-year average as it is not currently profitable.
            • SpiceJet does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
            • SpiceJet used its assets less efficiently than the Asia Airlines industry average last year based on Return on Assets.
            • It is difficult to establish if SpiceJet improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
            • It is difficult to establish if SpiceJet has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
            • Unable to compare SpiceJet's 1-year growth to the Asia Airlines industry average as it is not currently profitable.

            value

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            Pros

            • SpiceJet's share price is below the future cash flow value, and at a moderate discount (> 20%).
            • SpiceJet's share price is below the future cash flow value, and at a substantial discount (> 40%).
            • BSE:500285 is up 11.6% outperforming the Airlines industry which returned 5.5% over the past month.
            • BSE:500285 is up 11.6% outperforming the market in India which returned 8% over the past month.
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            Cons

            • SpiceJet has negative assets, we can't compare the value of its assets to the Asia Airlines industry average.
            • SpiceJet is loss making, we can't compare its value to the Asia Airlines industry average.
            • SpiceJet is loss making, we can't compare the value of its earnings to the India market.
            • 500285 underperformed the Airlines industry which returned -31.8% over the past year.
            • 500285 underperformed the Market in India which returned -14.5% over the past year.

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