Shares of Jet Airways Ltd rose sharply in Monday’s trade, pausing their two-day fall. The stock climbed 5 per cent to hit its upper price band of Rs 66.42 against a previous close of Rs 63.26. The scrip plunged to its 52-week low of Rs 62 on Friday. A total of 7,838 shares changed hands today, which was lower than the two-week average volume of 14,000 shares. Turnover on the counter stood at Rs 5.17 lakh, commanding a market capitalisation (m-cap) of Rs 754.51 crore.
The stock has slipped 6.91 per cent so far this year and 22.04 per cent in the past one year.
Today’s sharp movement in the private airline’s share price came after it was reported that Jet Airways’ successful resolution applicant — the Jalan-Kalrock consortium — is apparently planning to order 200 airplanes after National Company Law Appellate Tribunal (NCLAT) declined to halt the ownership transfer as requested by lenders. The consortium is led by UAE-based businessman Murari Lal Jalan and London-based Kalrock Capital.
The order could be announced around June, Livemint reported citing sources. The report mentioned that the consortium is in talks with original equipment manufacturers (OEMs) to place the order of at least 200 planes, which will be a mix of small, medium, and large narrow-body jets at the Paris airshow in June.
The airline had previously indicated that it would place a large order from Boeing and Airbus but that could not proceed due to opposition from the lenders.
The NCLAT refused to stay an order by the National Company Law Tribunal (NCLT) on January 13 that approved the transfer of ownership of bankrupt Jet Airways to the Jalan-Kalrock consortium and gave the winning bidder more time to pay the dues to the creditors.
On the technical front, the stock was last seen trading higher than the 5-day moving averages but lower than the 20-day, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 45.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 0.61.
The scrip has a one-year beta of 0.43, indicating low volatility.
Jet, co-founded by Naresh Goyal and his wife, ran out of cash in April 2019 and owes its lenders around Rs 18,000 crore.
Meanwhile, Indian equity benchmarks rose sharply in today’s deals, extending their gains for the second straight session. The domestic indices’ surge was propelled by gains in technology, metals, banks, financials and energy stocks.
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