Hold Spicejet, says Fairwealth Securities

According to Shahina Mukadam of Fairwealth Securities, one can continue holding SpiceJet.

Mukadam told CNBC-TV18, “SpiceJet is very close to support level of Rs 35. So, the news that has come in and hit us in the last two days with Air Asia entering into the domestic market is going to result in continuing pressure, poor sentiment for SpiceJet over the next couple of months. Because they have given very clear indication that they look at entering into the market over the next one year targetting the major area like Chennai, south India which is a major market for SpiceJet.”
“So to that extent, negative news is continuing to be there. But in terms of valuation, the stock is not that expensive. I think one can continue holding and wait for a bounce back if at all and try to get out,” Mukadam added.