Valuations: Currently, the stock trades at an EV/EBITDAR of 5.8xFY10E. At our target price of Rs45, the stock trades at an EV/EBITDAR of 8.1xFY10E. With the recent 16% reduction in fuel prices, no expected fare cut, and release of previously
locked-up FCC B funds (through WL Ross), we believe SpiceJet would tide over these cash-starved times. The airline continues to be one of the most efficient LCCs in the
domestic space, with load factors in excess of 70%. We continue to maintain a ‘BUY’ on the stock.
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