SpiceJet Stock Price Analysis and Quick Research Report. Is SpiceJet an attractive stock to invest in?

The civil aviation industry in India has emerged as one of the fastest-growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. 

A rise in the working group and middle-class demography has created a positive demand for the airline sector, to cater to the rising air traffic, the Government of India has been working towards increasing the number of airports. Investments to the tune of ($5.99 to $6.41) are expected in India’s airport infrastructure between FY18-23. While assessing the health of an airline company these financial metrics should be analyzed thoroughly.

SpiceJet stock price today is Rs 31.7. Let us have a look into SpiceJet for more understanding.

• Quick ratio: - It measures an airline company’s short-term liquidity, whether a company can cover all of its short-term debt obligations with its liquid/quick assets. This financial ratio is particularly useful for analyzing airline companies because they are capital-intensive and have significant amounts of debt. SpiceJet has a 0.2576 of which is considered disadvantageous in terms of liquidity.
   
• Return on Assets: - ROA indicates profitability earned on its assets, Airplane companies have planes as its primary assets, so bulk revenues are generated through Air travels. SpiceJet has a ROA of -4.2569 % which is significantly bad to its peers. 
   
• Debt to equity ratio: - With significant debt portion and capital expenditures it is a good metric to check out Debt to Equity ratio for an airline company. SpiceJet has a D/E ratio of -0.407 which is an insignificant indicative measure of financial risk when compared to its peers.
   
• Cash flows analysis: - Airline companies usually have high fixed costs and major capital expenditures, so it is a good metric to measure the company’s growth and future performance. SpiceJet has weak net cash flows of 154.35 Cr over the year.
   
• Share Price: - The current share price of SpiceJet is Rs 31.7. One can use valuation calculators of ticker to know if SpiceJet share price is undervalued or overvalued.