SpiceJet’s stock fell over 8 per cent during an intra-day low as the brokerage firm Nuvama slashed its target price by 14 per cent while maintaining a ‘hold’ rating. The firm raised concerns about the airline’s lack of transparency in financial data, a sharp 41 per cent drop in available seat kilometres (ASKM) year-on-year (YoY), and the fact that 30 per cent of its aircraft remained grounded in the second quarter. At the closing bell, the share saw a slight recovery to close at Rs 44.72, down by Rs 3.25 or 6.78 per cent. The company suffered an increase in its net loss, which widened to Rs 441.7 crore in the July-September quarter (Q2 FY25). It also successfully raised Rs 3,000 crore from institutional investors, pushing its net worth to Rs 70 crore – the first time in a decade that the airline is not in the red. However, the brokerage also warned that if the economy weakens, corporate and leisure travel demand could decline, negatively impacting the airline’s future earnings and valuation.
