The stock of VIP Industries included in Rakesh Jhunjhunwala’s portfolio can give double digit returns in 1 month. The travel sector remains a demand momentum after recovering from COVID 19.
Rakesh Jhunjhunwala Portfolio VIP Industries Stock Price: If you are looking for a better stock for the short term, then you can keep an eye on VIP Industries. This stock included in Rakesh Jhunjhunwala’s portfolio can give double digit returns in 1 month. In the hospitality and travel sector demand momentum after recovering from COVID 19, which can benefit the stock. According to brokerage house ICICI Securities, the stock has seen a breakout after being stuck in a range for a long time. There are further indications that a turnaround may be seen in this. Let us tell you that the stock is in the portfolio of veteran investor Rakesh Jhunjhunwala, although his stake in the company is less than 1 percent.
out of range for many years
Brokerage house ICICI Securities says that the hospitality and travel sector has underperformed for many years but now momentum is building in this sector. Brokerage says that VIP Industries is now looking better in this sector. Talking about VIP Industries, this stock was stuck in a range (650-190) for a long time. Now multiyear breakout has been seen from this range in the stock. The breakout was accompanied by significant volume, indicating a structural turnaround.
The brokerage house says that there is an upside momentum in the stock. Bullish momentum is being seen in the weekly strength indicator RSI. The thing to note during the upward move in the stock from June 2020 is that on many occasions, the buying demand has been seen around the 100 days EMA. It shows the strength of the stock. At the same time, there is also a good sign for the stability of the upside movement.
How much return can I get
Boying Range: Rs 695-715
Target: Rs 798
Stop loss: Rs 638
Upside: 12%
A Market Leader in the Luggage Space
The brokerage house says that VIP Industries is a market leader in the organized luggage space in India with several leading brands. The company has a presence all over India. The company’s brands include Value (Aristocrat), Mid (VIP, Skybags) and Premium (Carlton, Caprese), which cater to the demands of different customers. Tourism activities are improving in India, which will benefit the company. VIP Industries has seen a healthy recovery in the third quarter of the current financial year. The company has reported the highest revenue during the last 8 quarters. The recovery rate in Q3FY22 was 92 per cent with improvement in domestic passenger traffic data (85% recovery rate).
The brokerage says that by FY23E, VIP Industries will reach the pre-Covid level. On the other hand, mid to high revenue growth is expected in FY24E. The company may have an edge over Pierce. The company also has a plan to increase investment further, which can be beneficial.
(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.)
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