{"id":301104,"date":"2019-11-15T12:44:44","date_gmt":"2019-11-15T07:14:44","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=301104"},"modified":"2019-11-15T12:44:44","modified_gmt":"2019-11-15T07:14:44","slug":"stock-corner-spicejet-top-pick-in-aviation-space-target-price-cut-4-9-to-rs-160","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/stock-corner-spicejet-top-pick-in-aviation-space-target-price-cut-4-9-to-rs-160\/","title":{"rendered":"Stock corner: SpiceJet top pick in aviation space; target price cut 4.9% to Rs 160"},"content":{"rendered":"<p>SpiceJet\u2019s (SJ) Q2FY20 EBITDAR (adjusted for forex loss) of Rs. 1.4bn came below estimate due to lower yield. Yield growth of 1.9% YoY belied our 3.5% YoY growth estimate on account of rising competitive intensity induced pricing pressure. Key highlights: fuel CASK fell 0.9% QoQ (estimate 3.3% QoQ) due to on-boarding of smaller B-737 NGs (168 seats) versus SJ\u2019s larger aircraft (189 seats); we expect yields to remain flat YoY in Q3FY20; 3) capacity growth\/ PLF at 51%\/89% in line with estimate.<\/p>\n<p>Return of 737 Max is expected from Q1FY21, which will boost growth; and non-fuel CASK (adjusted for forex loss) at Rs. 2.5\/km is flat QoQ\u2014 in line with estimate. We, however, cut Q4FY20E yield growth to 2% YoY (Rs. 173 earlier) leading to 4.9% cut in TP to Rs. 160 (8.0x FY21E EV\/EBITDAR). Maintain \u2018Buy\u2019 with SJ as our top pick in the aviation space.<\/p>\n<p>While FY20E RPKM growth at 44% has been boosted by addition of 30 B-737 NGs taken from Jet, FY21 growth will be buttressed by addition of 737 Max. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>SpiceJet\u2019s (SJ) Q2FY20 EBITDAR (adjusted for forex loss) of Rs. 1.4bn came below estimate due to lower yield. Yield growth of 1.9% YoY belied our 3.5% YoY growth estimate on account of rising competitive intensity induced pricing pressure. Key highlights: fuel CASK fell 0.9% QoQ (estimate 3.3% QoQ) due to on-boarding of smaller B-737 NGs (168 seats) versus SJ\u2019s larger aircraft (189 seats); we expect yields to remain flat YoY in Q3FY20; 3) capacity growth\/ PLF at 51%\/89% in line with estimate. Return of 737 Max is expected from Q1FY21, which will boost growth; and non-fuel CASK (adjusted for forex [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[196,130,138],"tags":[],"class_list":["post-301104","post","type-post","status-publish","format-standard","hentry","category-civil-aviation-the-financial-express","category-newspapers","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/301104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=301104"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/301104\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=301104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=301104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=301104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}