Budget 2020 My Pick: This Rs 100 share will earn bumper income, experts say 'Buy'

Budget 2020 My Pick: If you are planning to invest in the market before Budget 2020 (#BUDGET2020ZEE), Spicejet share could well be a very good option, according to this expert. At Rs 106, the share has low valuation and, here is what should delight investors, it is expected to give high returns! Moreover, announcements in the upcoming budget by the Modi government could also likely play a positive role. Zee Business Research Head Sandeep Grover recommends buying Spicejet shares.

"The company has strong fundamentals and is available at a price which is half the price at which Indigo shares are being valued," Grover said. " The current share price is 37% below its top price," he added.

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"Market capitalization of the share is at an all-time high, while the market share of 16.3% is at its highest peak," he added.

"The company operational capacity will get a boost with delivery of 737 Max planes by April 2020, he added.
   
SpiceJet has already benefitted from the problems being faced by Indigo and Jet Airways. The profits have increased for Spicejet due to the operational shutdown of Jet. Also, the FY20 growth guidance given by market leader Indigo has been revised to 22.5% from an earlier 25%.

Spicejet will begin new operations on 20 February. It has announced 7 new flights to southern and western India apart from being the first company to start flights between Ahmedabad and Saudi Arabia.  

Also, Spicejet has benefitted from iconic investor Big Bull Rakesh Jhunjhunwala's move to raise his share by 1.67% in the company, in the June quarter.

At least 11 out of 15 brokers interviewed, recommended a 'Buy' for Spicejet while three recommended 'Hold'. One has recommended a 'Sell'.