Jhunjhunwala just bought a hell lot of shares of spice jet at a average price of 13.6
The stock rose 15 percent that is obvious become there was a high demand. Now the stock is trading at 21. Should we invest. Let us decide
The stock has a 52 weeks high of 22. Also it was trading at 15 last week. It is very likely that the record will break soon. Seeing the market trend and mentality there will be a speculative buy of the shares. These will further take the stock to new high. It might be profitable for a short time to invest and book the profits. Because profit booking is indispensable. The stock will definitely see a bearish pattern soon.
The financials are something to look at. Operating Profits are at Rs – 800 cr. PAT and PBT are at bottom of the graph. The asset valuation has reduced significantly from 2013. On the Brighter side the Sales have been following a upward trend. a 12.5 % growth over 2013.
Considering the current fall in fuel and airfuel the aviation might have a better profit margin due to reduced running costs. But the company owes a lot of dues. It is better to watch the stocks for now.