SpiceJet looks good for next two-three months: Irani

Mehraboon Irani of Nirmal Bang Securities feels SpiceJet looks good for the next two-three months due to its strong performance in the October-December quarter.
 
Irani told CNBC-TV18, “SpiceJet reported better-than-expected growth of 28 percent in average passenger revenues. I think Rs 102 crore profit was much ahead of expectations against the loss of Rs 39 crore in last quarter. On the whole, I would say the airline has done very well.”
 
“If you look at what the government has done over the last maybe 3-4 months - I think opening up of foreign direct investment (FDI) in the sector, allowing import of Aviation turbine fuel (ATF), not allowing complete import of aircraft by airline companies thereby restricting capacity should auger well for this domestic airline companies, though from a longer term bet it is a little bit too early to say that the stock should be bought for the next 3-4 years,” Irani added.
 
Irani also said, “But from the shorter term angle looking at SpiceJet’s performance, looking at the bottom-line, looking at the way it is growing, cautiously increasing its own capacity I think augers well for the stock atleast for the next two or three months. And considering what is happening as far as the Etihad-Jet deal goes, if something happens in SpiceJet it could be one more trigger.”