Demand is coming in the hotel industry. Apart from domestic travelers, this demand is also from international travelers. The revival in corporate demand is the key trigger for the hotel industry.
Rakesh Jhunjhunwala Portfolio Stock: Uncertainty exists in the stock market due to geopolitical risk. Experts believe that there are many such factors present in the market, due to which the volatility is going to continue in the near term. In such a situation, it is not easy to identify the right stocks for investment. If you are looking for a better stock, then the hotel stock included in the portfolio of market veteran Rakesh Jhunjhunwala can keep an eye on Indian Hotels Company. The stock of Indian Hotels has proved to be a multibagger for investors. Even in the downturn of the market, it has accelerated.
Huge demand in hotel industry
Brokerage house Motilal Oswal says that there is tremendous demand in the hotel industry. Apart from domestic travelers, this demand is also from international travelers. The revival in corporate demand is the key trigger for the hotel industry. With increasing hotel room booking and increasing occupancy, the industry will see good growth ahead. In these, Indian Hotels Company can prove to be the winner. While recommending investment in the stock, the brokerage house has given a target of Rs 265. In terms of current price of Rs 194, it can give 37 percent return.
Strong recovery will come in the hotel industry
The brokerage house says that although the near term earnings of the sector will be affected due to the third wave of COVID 19, but this sector is beneficiary in the opening up theme. Large scale vaccination and lower hospitalization rate in India are positive for the sector. Therefore, if there is any fall in the stock of Indian Hotels Company, then there will be an opportunity to buy.
The brokerage house says that there will be a strong recovery in the hotel industry during FY23/FY24. ARR will improve due to normalization of economic activities. Increase in occupancy rate will increase the profits of the companies. The industry will also benefit from increased Cast Rationalization and F&B income.
75% return in 1 year
The stock of Indian Hotels Company has been a multibagger for the investors. The stock has given 75% return in 1 year. At the same time, this year when the market has been under pressure, the stock has given double digit returns. Rakesh Jhunjhunwala holds 2.2 percent stake in the company. He has a total of 28,566,965 shares of the company, whose value is Rs 579 crore.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)