SpiceJet (SPICEJET)

FairStock Score: 9/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

SpiceJet is exactly the kind of business I avoid. I want a business with a durable moat and predictable earnings; airlines have neither. They are capital-hungry, commodity-like, and at the mercy of fuel prices, competition and the economic cycle. The numbers here are alarming. A P/E of 0.00 is not cheap—it means there is no earnings to pay for. With book value of only ₹0.30, the market is asking ₹15 for equity that earns a catastrophic ROE of -1,930%. In Graham's language, this is not investment; it is speculation. The latest quarter sums it up: ₹1,384 Cr of sales but a net loss of ₹269 Cr. Even though sales grew 12.45%, profit growth was -1,104%, which tells me growth is being bought by burning cash. With debt/equity not even calculable, equity base appears close to zero or negative. The Piotroski F-score of 4/9 signals poor financial health. A 9.1% ROCE is nowhere near enough to cover debt costs in a capital-intensive airline. At ₹15, the stock sits near its 52-week high, so investors are paying for a recovery, not for value. I do not predict the future; I insist on margin of safety. SpiceJet has none. Promoter holding at ~31% is meaningful but does not compensate for the balance sheet risk. This is a cyclical, maybe a turnaround candidate, but I cannot value a company whose book value is ₹0.30 and whose losses are accelerating. I would rather watch from the sidelines.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer