The SpiceJet Ltd. stock may have room to rise further despite rallying to a record high and commanding substantially lower valuations compared to peers.
The stock has risen around 120 percent over the last one year but still remains the cheapest bet among Asian low cost carriers. The stock trades at a 47 percent discount to the average Asian low cost carrier and a 9 percent discount to its domestic rival InterGlobe Aviation Ltd.
Nearly 10 out of 11 analysts tracked by Bloomberg have a 'buy' rating on the stock with a potential upside of nearly 17percent, on an average.
HSBC Global Research, for instance, sees a potential upside of nearly 27 percent on account of declining unit cost, lower debt levels and and stronger position in non-metro routes.