Stock Performance and Market Context
On 12 Jan 2026, SpiceJet Ltd’s stock recorded an intraday low of Rs.25.85, down 6.07% from the previous close, and closing the day with a loss of 4.43%. This marks the sixth consecutive day of decline, during which the stock has lost 12.33% in value. The current price is less than half of its 52-week high of Rs.56.80, underscoring the steep erosion in investor confidence over the past year.
The stock’s performance today notably underperformed the airline sector by 2.82%, while broader market indices showed relative stability. The Sensex opened lower at 83,435.31 points, down 0.17%, and was trading marginally down by 0.12% at 83,477.89 points during the session. Despite the Sensex being just 3.21% below its 52-week high of 86,159.02, SpiceJet’s stock remains significantly detached from market gains.
Technical indicators further highlight the bearish trend, with SpiceJet trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum.
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Financial Metrics and Fundamental Assessment
SpiceJet’s financial health remains under pressure, as reflected in its Mojo Score of 1.0 and a Mojo Grade of Strong Sell, downgraded from Sell on 23 Dec 2024. The company’s market capitalisation grade stands at 3, indicating moderate size but limited strength relative to peers.
One of the critical concerns is the company’s negative book value, which points to weak long-term fundamental strength. Over the past five years, SpiceJet’s net sales have contracted at an annualised rate of -10.67%, while operating profit has stagnated at 0%, signalling a lack of growth momentum. The company’s debt profile is also notable, with an average debt-to-equity ratio of zero, which may reflect accounting nuances but does not alleviate concerns about financial leverage and liquidity.
Recent quarterly results have been disappointing, with the company reporting a net loss (PAT) of Rs. -621.29 crores, representing a steep decline of -654.5% compared to the previous four-quarter average. The return on capital employed (ROCE) for the half-year period is at a low of -18.29%, indicating inefficient capital utilisation. Inventory turnover ratio, a measure of operational efficiency, is also at a low 24.91 times for the half-year, suggesting slower asset turnover.
Risk Factors and Valuation Concerns
SpiceJet’s earnings before interest, taxes, depreciation and amortisation (EBITDA) remain negative, adding to the risk profile of the stock. The company’s valuation is currently below its historical averages, reflecting market apprehension about its near-term prospects. Over the last year, the stock has generated a negative return of -47.04%, while profits have declined by -4.6%, underscoring the challenges in reversing the downtrend.
In comparison, the Sensex has delivered a positive return of 7.88% over the same period, highlighting the stock’s underperformance relative to the broader market. Additionally, SpiceJet has lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent below-par performance both in the long and short term.
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Sector and Market Environment
The airline sector, to which SpiceJet belongs, has experienced volatility amid fluctuating fuel prices, regulatory changes, and evolving demand patterns. While the Sensex remains close to its 52-week high, the airline sector has faced headwinds that have disproportionately affected companies with weaker financials. SpiceJet’s stock price trajectory reflects these sectoral pressures combined with company-specific challenges.
Despite the broader market’s resilience, SpiceJet’s share price continues to trend downward, trading below all major moving averages, which often serve as technical resistance levels. This persistent weakness suggests that the stock remains under selling pressure amid cautious market sentiment.
Summary of Key Data Points
To summarise, SpiceJet Ltd’s stock has reached a new 52-week low of Rs.25.85, closing the day down 4.43%. The stock has declined by 12.33% over the past six trading sessions and is trading below all major moving averages. The company’s financial indicators reveal a negative book value, declining sales, negative PAT of Rs. -621.29 crores, and a low ROCE of -18.29%. The stock’s Mojo Grade is Strong Sell, reflecting weak fundamentals and elevated risk. Over the past year, the stock has underperformed the Sensex by more than 54 percentage points, with a return of -47.04% compared to the Sensex’s 7.88% gain.
These factors collectively illustrate the challenges faced by SpiceJet Ltd in the current market environment, as the stock remains under pressure amid subdued financial performance and sectoral headwinds.
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