1. Event Update | Airlines
June 14, 2010
SpiceJet ACCUMULATE
CCUMULATE
CMP Rs55
SpiceJet to change face Target Price Rs65
Sun TV promoter Kalanithi Maran has announced to buy 37.75% stake in SpiceJet Investment Period 12 months
from the company's promoter Bhupendra Kansagra (Royal Holdings Services) and
Stock Info
investor Wilbur Ross at Rs47.3/share, which is at a 16.7% discount to the current
Sector Airlines
market price. Currently, the Kansagra family holds nearly 3.11cr shares or 7.7%
stake in the company post 100% conversion of the FCCBs. Wilbur Ross holds close Market Cap (Rs cr) 1,772
to 12.5cr shares or 31% stake in the company post 100% conversion of the FCCBs. Beta 1.2
Kalanithi Maran will make an open offer at an expected price of Rs58/share for 52 Week High / Low 65/16
additional 20% stake in the company. Prior to the stake sale announcement,
Avg Daily Volume 3752239
Goldman Sachs Securities (3.8% stake) converted close to 1.5cr shares held by
Face Value (Rs) 10
way of warrants and Istithmar World (5.5% stake) converted 100% of its FCCBs
worth US $12mn to 2.2cr shares, respectively. We maintain an Accumulate rating BSE Sensex 17,338
Target Price EPS.
on the stock with a Target Price of Rs65, valuing the stock at 9x FY2012E EPS. Nifty 5,198
Reuters Code SPJT.BO
Exhibit 1: Shareholding Pattern
Pre
re-FCCB
Pre-FCCB and Post
Post FCCB and Bloomberg Code SJET@IN
Warrant Conversion
Warrant Warrant
Warrant Conversion After Stake Sale
No. of % of No. of % of No. of % of Shareholding Pattern (%)
Shareholders Shares (cr) Holding Shares (cr) Holding Shares (cr) Holding
Ajay Singh 1.0 4.13 1.0 2.5 1.0 2.5 Promoters 12.9
Avanthi Shah 0.8 3.26 0.8 1.9 0.8 1.9
MF / Banks / Indian FIs 45.1
Ewart Investments Ltd 1.3 5.45 1.3 3.3 1.3 3.3
IDFC Premier Equity Fund 0.8 3.38 0.8 2.0 0.8 2.0 FII / NRIs / OCBs 15.7
Royal Holdings Services Ltd 3.1 12.85 3.1 7.7 - -
Indian Public / Others 26.4
Sundaram BNP Paribas Mutual Fund 0.7 2.80 0.7 1.7 0.7 1.7
Vijendra Singh 0.5 2.12 0.5 1.3 0.5 1.3
Goldman Sachs - - 1.5 3.8 1.5 3.8 Abs. (%) 3m 1yr 3yr
Istithmar World PJSC 2.2 5.5 2.2 5.5
WL Ross* 12.5 30.9 - - Sensex 1.0 13.8 22.1
Kalanithi Maran 15.2 37.7
SpiceJet (7.4) 166.4 (2.7)
Total Equity* 40.4
Source: Company, Angel Research, Note:* Estimated
Exhibit 2: Key Financials
Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E
Net Sales 1,689 2,181 2,718 3,287
% chg 30.5 29.1 24.6 20.9
Profit
Net Profit (353) 61 205 293
% chg 164.1 (117.4) 234.2 42.5
FDEPS (Rs) (14.6) 1.5 5.1 7.2
EBITDA Margin (%) (24.8) 1.2 7.0 8.5
P/E (x) (3.8) 21.7 10.9 7.6
RoE (%) - - - 50.0
RoCE (%) - 23.8 68.4 46.4
P/BV (x) (3.1) (3.9) 5.1 3.0
EV/Sales (x) 0.9 0.6 0.6 0.4 Sharan Lillaney
EV/EBITDA (x) (3.6) 50.5 8.8 4.9 +91 22 4040 3800 Ext: 338
Source: Company, Angel Research sharan.lillaney@angeltrade.com
Please refer to important disclosures at the end of this report

2. SpiceJet | Event Update
Maran on SpiceJet's Board - Positive impact
We believe that Maran's entry into SpiceJet as the single largest shareholder is
positive for the company, as earlier its shareholding was very fragmented resulting in
little management control. With a strong investor on its Board, the company's credit
rating could also improve and enable it to raise money fairly quickly to fund its future
expansion plans. Moreover, Maran's presence will help the company
explore opportunities in South India where hitherto it has had a limited presence.
Spicejet's impending plans to commence international operations particularly at a
time when passenger traffic is increasing for low-cost carriers could also become a
reality with a stable management and investor at the helm of affairs. Notably, the
company expects to strongly focus on its expansion plans post FY2012.
Outlook and Valuation
We believe that the company is well placed to benefit from a reviving economy, which
has led to an increase in passenger traffic demand, and which is expected to remain
robust over FY2010-12E . Moreover, the company expects to add four
aircraft in the current fiscal, which will further bolster Revenues for the year. Going
forward, SpiceJet's market share is expected to increase as the company's peers King-
fisher and Jet Airways are unlikely to expand in FY2011-12E due to losses
during FY2010.
At the CMP of Rs55, the stock is trading at 10.9x FY2011E and 7.6x FY2012E
Earnings. We recommend an Accumulate on the stock, with a Target Price of Rs65,
We Target Price
valuing the stock at 9x FY2012E Earnings of Rs7.2.
June 14, 2010 2

3. SpiceJet | Event Update
Profit & Loss Statement Rs crore
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Net Sales 749 1,295 1,689 2,181 2,718 3,287
Total operating income 749 1,295 1,689 2,181 2,718 3,287
% chg 140.5 72.8 30.5 29.1 24.6 20.9
Total Expenditure 920 1,547 2,109 2,155 2,527 3,007
Fuel & Oil 399 703 945 814 1,013 1,225
Other Mfg costs 187.1 345.2 476.4 511.8 584.9 675.2
Personnel 97.2 143.2 155.1 181.7 211.2 255.4
Other 88.8 103.4 173.0 257.3 276.6 317.8
EBITDA
EBITDA (170.3) (252.0) (419.2) 26.2 191.6 280.5
% chg 226.8 47.9 66.3 (106.2) 632.5 46.4
(% of Net Sales) (22.7) (19.5) (24.8) 1.2 7.0 8.5
Depreciation& Amortisation 5.847 7.817 7.254 7.661 8.446 8.869
EBIT (176.2) (259.8) (426.4) 18.5 183.2 271.7
% chg 192.3 47.5 64.1 (104.3) 890.1 48.3
(% of Net Sales) (23.5) (20.1) (25.2) 0.8 6.7 8.3
Interest & other Charges 4.3 13.7 16.0 6.1 4.1 -
Other Income 107.8 143.6 124.1 61.0 76.0 92.0
(% of PBT) (148.5) (110.5) (39.0) 83.1 29.8 25.3
Share in profit of Associates - - - - - -
Recurring PBT (72.6) (130.0) (318.3) 73.4 255.1 363.6
% chg 98.5 79.0 145.0 (123.1) 247.6 42.5
Extraordinary Expense/(Inc.) 3.4 1.1 30.9 5.6 - -
PBT (reported) (76.0) (131.1) (349.2) 67.8 255.1 363.6
Tax 1.0 2.4 3.3 6.4 49.7 70.9
(% of PBT) (1.3) (1.8) (1.0) 9.4 19.5 19.5
PAT (reported) (77.0) (133.5) (352.6) 61.4 205.4 292.7
Add: Share of earnings of associate - - - - - -
Less: Minority interest (MI) - - - - - -
Prior period items - - - - - -
PAT after MI (reported) (77.0) (133.5) (352.6) 61.4 205.4 292.7
ADJ. PAT
ADJ. PA (77.0) (133.5) (352.6) 61.4 205.4 292.7
% chg 119.8 73.4 164.1 - 234.2 42.5
(% of Net Sales) (10.3) (10.3) (20.9) 2.8 7.6 8.9
Basic EPS (Rs) (3.2) (5.5) (14.6) 2.5 5.1 7.2
Fully Diluted EPS (Rs) (3.2) (5.5) (14.6) 1.5 5.1 7.2
% chg 68.3 73.4 163.7 (110.4) 234.2 42.5
June 14, 2010 3

4. SpiceJet | Event Update
Balance Sheet Rs crore
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
SOURCES OF FUNDS
Equity Share Capital 240.7 240.7 241.0 241.9 404.5 404.5
Preference Capital - - - - - -
Reserves& Surplus (56.1) (212.7) (670.5) (584.1) 34.9 327.6
Funds
Shareholders Funds 184.6 28.0 (429.5) (342.2) 439.3 732.0
Minority Interest - - - - - -
Total Loans 432.2 540.1 488.8 438.3 - -
Deferred Tax Liability - - - - - -
Total Liabilities 616.7 568.1 59.4 96.1 439.3 732.0
APPLICATION OF FUNDS
APPLICATION
Gross Block 62.1 86.5 95.8 263.1 292.0 324.1
Less: Acc. Depreciation 13.7 21.4 28.2 35.9 44.3 53.2
Net Block 48.4 65.1 67.6 227.2 247.7 271.0
Capital Work-in-Progress 694.4 498.9 185.3 164.7 82.3 6.8
Goodwill - - - - - -
Investments 81.2 0.4 - - - -
Current Assets 479.9 796.9 497.9 597.2 825.6 1,215.7
Cash 351.1 608.1 308.0 450.7 534.9 864.1
Loans & Advances 115.4 176.2 154.3 112.8 248.2 300.2
Inventories 7.9 11.1 12.5 14.7 22.3 27.0
Debtors 5.6 1.6 12.4 19.0 20.1 24.3
Other - - 10.8 - - -
Current liabilities 687.1 793.2 691.4 892.9 716.3 761.4
Net Current Assets (207.2) 3.8 (193.5) (295.8) 109.3 454.3
Mis. Exp. not written off - - - - - -
Total Assets 616.7 568.1 59.4 96.1 439.3 732.0
June 14, 2010 4

5. SpiceJet | Event Update
Cash Flow Statement Rs crore
Y/E March FY2007 FY2008 FY2009 FY2010E FY2011E FY2012E
Profit before tax (183.8) (274.7) (473.3) 6.8 179.1 271.7
Depreciation 5.8 7.8 7.3 7.7 8.4 8.9
Change in Working Capital 488.0 76.9 (179.0) 224.1 11.9 111.8
ADD: Other income 107.8 143.6 124.1 61.0 76.0 92.0
Direct taxes paid 1.0 2.4 3.3 6.4 49.7 70.9
Cash Flow from Operations 416.9 (48.8) (524.3) 293.2 225.7 413.4
Inc./ (Dec.) in Fixed Assets (334.7) 171.1 304.3 (167.3) (28.9) (32.1)
Inc./ (Dec.) in Investments (81.2) 80.9 0.4 - - -
Inc./ (Dec.) in loans and advances(33.7) (60.8) 21.9 41.5 (135.5) (52.0)
Other income/Expense 68.7 6.7 (57.8) (24.8) 50.5 -
Cash Flow from Investing (380.9) 197.9 268.8 (150.6) (113.9) (84.1)
Issue of Equity 240.4 - 6.6 0.1 54.6 -
Inc./(Dec.) in loans 21.7 108.0 (51.3) - (82.2) -
Dividend Paid (Incl. Tax) - - - - - -
Others - - - - - -
Financing
Cash Flow from Financing 262.1 108.0 (44.7) 0.1 (27.7) -
Inc./(Dec.) in Cash 298.1 257.0 (300.1) 142.7 84.1 329.3
Opening Cash balances 52.9 351.1 608.1 308.0 450.7 534.9
Closing Cash balances 351.1 608.1 308.0 450.7 534.9 864.1
June 14, 2010 5

6. SpiceJet | Event Update
Key Ratios
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) (17.2) (9.9) (3.8) 36.3 10.9 7.6
P/E (on basic, reported EPS) (17.2) (9.9) (3.8) 21.7 10.9 7.6
P/CEPS (18.7) (10.6) (3.8) 19.3 10.4 7.4
P/BV 7.2 47.4 (3.1) (3.9) 5.1 3.0
Market cap. / Sales 1.8 1.0 0.8 0.6 0.8 0.7
EV/Sales 1.9 1.0 0.9 0.6 0.6 0.4
EV/EBITDA (8.3) (5.0) (3.6) 50.5 8.8 4.9
EV / Total Assets 2.3 2.2 25.4 13.7 3.9 1.9
EV/EBITDAR (62.3) 2,141.5 (25.1) 3.2 2.7 1.7
Per Share Data (Rs)
EPS (Basic) (3.2) (5.5) (14.6) 2.5 5.1 7.2
EPS (fully diluted) (3.2) (5.5) (14.6) 1.5 5.1 7.2
Cash EPS (3.0) (5.2) (14.3) 2.9 5.3 7.5
DPS - - - - - -
Book Value 7.7 1.2 (17.8) (14.1) 10.9 18.1
Returns (%)
ROCE (Pre-tax) - - - 23.8 68.4 46.4
ROE - - - - - 50.0
Turnover ratios (x)
Asset Turnover (Gross Block) 12.4 17.4 18.5 12.2 9.8 10.7
Asset Turnover (Net Block) 15.4 22.8 25.5 14.8 11.4 12.7
Asset Turnover (Total Assets) 1.5 2.2 5.4 28.1 10.2 5.6
Operating Income / Invested Capital 2.8 18.0 (11.7) (7.2) (12.1) (28.9)
Inventory / Sales (days) 3 3 3 2 2 3
Receivables (days) 2 1 2 3 3 2
Payables (days) 194 193 139 103 92 80
Working capital cycle (ex-cash) (days) (155) (164) (119) (104) (79) (46)
Solvency ratios (x)
Gross debt to equity 2.3 19.3 (1.1) (1.3) - -
Net debt to equity 80.7 (2.4) (0.4) 0.0 (1.2) (1.2)
Net debt to EBITDA 0.0 0.3 (0.4) (0.5) (2.8) (3.1)
Interest Coverage (EBIT / Interest) (41.3) (18.9) (26.6) 3.0 44.6
June 14, 2010 6

7. SpiceJet | Event Update
Disclaimer
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Securities Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment
decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are
those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading
volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources
believed to be true, and is for general guidance only. Angel Securities Limited has not independently verified all the information contained
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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section).
Disclosure of Interest Statement SpiceJet
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.
Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to -15%) Sell (< -15%)
June 14, 2010 7

8. SpiceJet
Address: Acme Plaza, ‘A’ Wing, 3rd Floor, M.V. Road, Opp. Sangam Cinema, Andheri (E), Mumbai - 400 059.
Tel : (022) 3952 4568 / 4040 3800
Research Team
Fundamental:
Sarabjit Kour Nangra VP-Research, Pharmaceutical sarabjit@angeltrade.com
Vaibhav Agrawal VP-Research, Banking vaibhav.agrawal@angeltrade.com
Vaishali Jajoo Automobile vaishali.jajoo@angeltrade.com
Shailesh Kanani Infrastructure, Real Estate shailesh.kanani@angeltrade.com
Anand Shah FMCG , Media anand.shah@angeltrade.com
Deepak Pareek Oil & Gas deepak.pareek@angeltrade.com
Puneet Bambha Capital Goods, Engineering puneet.bambha@angeltrade.com
Sushant Dalmia Pharmaceutical sushant.dalmia@angeltrade.com
Rupesh Sankhe Cement, Power rupeshd.sankhe@angeltrade.com
Param Desai Real Estate, Logistics, Shipping paramv.desai@angeltrade.com
Sageraj Bariya Fertiliser, Mid-cap sageraj.bariya@angeltrade.com
Viraj Nadkarni Retail, Hotels, Mid-cap virajm.nadkarni@angeltrade.com
Paresh Jain Metals & Mining pareshn.jain@angeltrade.com
Amit Rane Banking amitn.rane@angeltrade.com
Rahul Jain IT, Telecom rahul.j@angeltrade.com
Jai Sharda Mid-cap jai.sharda@angeltrade.com
Sharan Lillaney Mid-cap sharanb.lillaney@angeltrade.com
Amit Vora Research Associate (Oil & Gas) amit.vora@angeltrade.com
V Srinivasan Research Associate (Cement, Power) v.srinivasan@angeltrade.com
Aniruddha Mate Research Associate (Infra, Real Estate) aniruddha.mate@angeltrade.com
Mihir Salot Research Associate (Logistics, Shipping) mihirr.salot@angeltrade.com
Chitrangda Kapur Research Associate (FMCG, Media) chitrangdar.kapur@angeltrade.com
Vibha Salvi Research Associate (IT, Telecom) vibhas.salvi@angeltrade.com
Pooja Jain Research Associate (Metals & Mining) pooja.j@angeltrade.com
Technicals:
Shardul Kulkarni Sr. Technical Analyst shardul.kulkarni@angeltrade.com
Mileen Vasudeo Technical Analyst vasudeo.kamalakant@angeltrade.com
Derivatives:
Siddarth Bhamre Head - Derivatives siddarth.bhamre@angeltrade.com
Jaya Agarwal Derivative Analyst jaya.agarwal@angeltrade.com
Institutional Sales Team:
Mayuresh Joshi VP - Institutional Sales mayuresh.joshi@angeltrade.com
Abhimanyu Sofat AVP - Institutional Sales abhimanyu.sofat@angeltrade.com
Nitesh Jalan Sr. Manager niteshk.jalan@angeltrade.com
Pranav Modi Sr. Manager pranavs.modi@angeltrade.com
Sandeep Jangir Sr. Manager sandeepp.jangir@angeltrade.com
Ganesh Iyer Sr. Manager ganeshb.Iyer@angeltrade.com
Jay Harsora Sr. Dealer jayr.harsora@angeltrade.com
Meenakshi Chavan Dealer meenakshis.chavan@angeltrade.com
Gaurang Tisani Dealer gaurangp.tisani@angeltrade.com
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Dilip Patel Production dilipm.patel@angeltrade.com
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