Active Stocks
Sat Mar 02 2024 12:49:58
  1. Tata Steel share price
  2. 155.15 3.43%
  1. HDFC Bank share price
  2. 1,430.35 -0.06%
  1. State Bank Of India share price
  2. 773.05 0.49%
  1. Tata Motors share price
  2. 988.40 1.15%
  1. Wipro share price
  2. 522.65 0.67%
Business News/ Markets / Stock Markets/  Lemon Tree Hotels, Indian Hotels, Chalet Hotels gain ahead of ICC Men's World Cup, analysts positive outlook
BackBack

Lemon Tree Hotels, Indian Hotels, Chalet Hotels gain ahead of ICC Men's World Cup, analysts positive outlook

Hotel stocks gain as ICC Men's World Cup boosts demand and occupancy projections for October and November 2023.

Shares of Lemon Tree Hotels, Indian Hotels Company, and Chalet Hotels gained over 1% to 2% on Thursday. (Image: Company Website)Premium
Shares of Lemon Tree Hotels, Indian Hotels Company, and Chalet Hotels gained over 1% to 2% on Thursday. (Image: Company Website)

Hotel stocks on Thursday's session were trading in the green zone in light of the ICC Men's World Cup, which will be played in 10 stadiums around the country from October 5 to November 19. Hotels are projected to have a 100% occupancy rate in October and November 2023, according to analysts, and demand is expected to also rise.

Shares of Lemon Tree Hotels, Indian Hotels Company, and Chalet Hotels gained over 1% to 2% on Thursday. Chalet Hotels share price touched 52-week high of 596.90 apiece on BSE, and Indian Hotels share price was hovering around its 52-week levels in today's session. 

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

In a recent analysis, domestic brokerage Emkay Global Financial Services noted that the outlook for the Indian hospitality sector is positive for the next few years, driven by demand growth that is outperforming supply growth. According to the brokerage, India's hotel industry would have an extended period of high occupancy and increased RevPAR, or revenue per available room.

The brokerage house's upbeat outlook aided to the overall positive sentiment of hotel stocks.

Also Read: Stocks to buy today: Experts recommend these five shares ahead of RBI policy meeting

Further, the brokerage stated that increasing per-capita income, India's improving share of international visitor arrivals (ITAs), and office space expectations for a 7.5% CAGR in key cities over Q3CY22-CY25 should all support demand.

“We initiate coverage on Indian Hotels Company with a ‘buy’ recommendation, on Lemon Tree Hotels also with a ‘buy’, and on Chalet Hotels with a ‘hold’ amid limited upside. All three players have a strong pipeline of room additions, with room-count CAGR of 10-13% over FY23-26E. All three players will gain from further margin improvement and deleveraging by FY26, given increase in revenue and focus on cost reduction," said Emkay in its report. 

According to technical analysts, the broader trend for hotel stocks look positive as many of the stocks from this sector have witnessed a good price volume action.

“Indian Hotel has a good support base around 400 while stocks such as Lemon Tree and Chalet too have been forming higher top higher bottom structure with supports around 110 and 535, respectively. Positional traders can continue to trade with a positive bias till the mentioned supports are intact," advised Ruchit Jain, Lead Research Analyst at 5paisa.

Also Read: Banking sector earnings preview: Expect a decent YoY earning growth in Q2 despite NIM compression, says Motilal Oswal

Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, explained that Lemon Tree share price saw a gap up opening but no major traction was witnessed after initial gains. 

Overall prices are in uptrend and closing beyond 120 would trigger strong upmove where 125 can be seen as resistance, and immediate support is at 115, according to Bhosale. 

Also Read: Sobha, Macrotech Developers' shares jump on record Q2 sales, pre-sales

Indian Hotels share price in the last couple of weeks have traded in a range of 400 - 415 , currently prices are trading above the higher range confirming a range breakout. In the near term prices can extend move towards 435 with 400 remains a strong support.

According to Bhosale, Chalet Hotels share price hit fresh new high in today's session, and they continue to have a positive bias on this stock. However one should consider buy on dip with 580 seen as strong support followed by 565. The upmove can extend in near term towards 625. 

Also Read:1:10 stock split: Small-cap stock jumps after announcement of record date

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 05 Oct 2023, 01:48 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie