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SpiceJet an underperformer: Karvy

Posted on: June 16th, 2009 and is filed under Brokerage Recommendations.

Karvy Stock Broking has changed its rating on SpiceJet from outperformer to underperformer with a price target of Rs 16 in its report dated June 16, 2009

‚ÄúDuring 4QFY09, SpiceJet is expected to report revenues of Rs 3,363 million as against revenues of Rs 3,993 million reported during 4QFY08. Revenues are expected to be lower on YoY basis on account of lower average fares and lower departures. Due to lower fuel prices, airfares during 4QFY09 are expected to be lower at Rs 2,650 as compared to average airfares of Rs 3,059 reported during corresponding period previous year. Due to lower ATF prices we expect the company to report negative EBITDA of Rs 819 million as against negative EBITDA of Rs 1,334 million reported during 4QFY08. We continue to maintain our price target of Rs 16 on the stock. Due to run-up in stock price post our previous update; we are changing our rating on the stock from Outperformer to Underperformer,” says Karvy Stock Broking.

source: Moneycontrol

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