SpiceJet (SPICEJET)
CyclicalFairStock Score: 9/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹15 |
| Market Cap | ₹2,453.97 Cr |
| P/E Ratio | 0 |
| ROCE | 9.1% |
| ROE | -1,930.35% |
| Dividend Yield | 0% |
| Profit Growth | -1,104.04% |
| Debt/Equity | — |
| Sales Growth | 12.45% |
| Promoter Holding | 30.99% |
| 52-Week Range | ₹8.43 — ₹15.6 |
| Sector | Transport Services |
| Book Value | ₹0.3 |
Strengths
- Sales grew 12.45% and latest quarter revenue is ₹1,384 Cr, showing demand is not collapsing.
- ROCE of 9.1% suggests some positive return at operating capital level, before finance costs.
- Stock near 52-week high of ₹15.60 indicates market expectations of recovery.
- Promoter holding of 30.99% ties promoter wealth to the company's fate.
Concerns
- Latest quarter net loss of ₹269 Cr and profit growth of -1,104.04% show a worsening bottom line.
- P/B of 50 on book value of ₹0.30 means investors pay a huge premium for negligible equity; ROE is -1,930.35%.
- Debt/Equity is N/A, implying a thin or negative equity base, and dividend yield is zero.
- Piotroski F-score of 4/9 and FairStock Score of 8/100 flag poor financial health.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer