Hotel companies’ shares hit new 52-week high amid opening up theme; EIH, Chalet Hotel, Lemon Tree buzzing shares
On the back of the opening up theme, the shares of hotel companies — Indian Hotels, EIH, Chalet Hotels and Lemon Tree — were on a roll with the majority of them touching a new 52-week high on Monday.
On the back of the opening up theme, the shares of hotel companies — Indian Hotels, EIH, Chalet Hotels, and Lemon Tree — were on a roll with the majority of them touching a new 52-week high on Monday.
Since the time Prime Minister Narendra Modi has announced to give a major focus to the states with a high number of tourists, the hotel shares have been buzzing as the majority of the stocks have been surging up to 35 per cent in the last five sessions.
Individually, EIH has surged most of all, up near 20 per cent to Rs 150.7 per share, followed by Chalet Hotels up 18 per cent to Rs 255.5 per share and then India Hotels Company Limited up over 12 per cent to Rs 200.9 per share on the BSE intraday trade on Monday.
While Lemon Tree was the only stock, which joined the rally but didn’t hit a new 52-week high today. The counter grew by over 10 per cent to Rs 45.35 per share on the BSE intraday trade today.
In the last five sessions, EIH and Chalet Hotel have jumped over 35 per cent, while Indian Hotels grew by over 27 per cent, followed by Lemon Tree up over 13 per cent as compared to a 2.4 per cent rise in the S&P BSE during the same period.
Besides hotel stocks, other restaurant chain shares such as Westlife Development, which runs McDonald’s restaurants in western and southern India, Taj GVK Hotels & Resorts, and Speciality Restaurants were up in the range of 5 per cent to 9 per cent on the BSE.
Hotel and tourism stocks would rally most going forward, says Tradeswift Director and the market analyst Sandeep Jain points out being bullish in the unlock theme.
With covid cases declining and increase in the vaccinations drive, the travel would improve, Jain says, adding further that this will have a direct impact on the hotel and tourism companies. He suggests investors to hold hotel stocks, and can also make a fresh entry in staggered manners.
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