Rakesh Jhunjhunwala portfolio: Indian Hotel shares are on of the hospitality stocks that have given stellar return to its shareholders despite global economy reeling under the Covid-19 heat. In fact in last one year, IHCL share has given multibagger return to its shareholders after surging from around ₹110 to ₹160 apiece levels, logging near 140 per cent rise in this period. After reporting stronger-than-expected demand recovery in Q4FY22 results, Indian Hotel share price haws been appreciating for last few sessions and on Monday, it climbed to its life-time high of ₹265.50 per share levels on NSE.
According to stock market experts, this Rakesh Jhunjhunwala stock has climbed to its life-time high after giving fresh breakout on chart at ₹230 levels. They said that Indian Hotel shares have formed ‘higher high formation’ on chart that signals further upside in the counter. They went on to add that the company has delivered weak Q4 results but it has reported higher-than-expected demand recovery that reflects fast recovery in the wake of unlock theme.
Speaking on Indian Hotel share price outlook, Sumeet Bagadia, Executive Director at Choice Broking said, “This one of the multibagger stocks in Rakesh Jhunjhunwala portfolio has recently given fresh breakout at ₹230 levels and has formed ‘higher high formation’ on the chart that reflects further upside in the counter in near term. The stock has strong support at ₹230 to ₹240 levels whereas it has immediate hurdle placed at ₹280 while major hurdle is at ₹300 per share levels. However, the stock is bullish and any dip in the counter should be seen as buying opportunity.”
Giving ‘bullish for long term’ tag to this Rakesh Jhunjhunwala stock, Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The hotel industry is one of the best ways to play the post-covid trade opening up the theme, demand is expected to exceed supply due to good recovery in both leisure and business travel. However, inflationary headwinds and the normalization of fixed costs will put pressure on the margins of the industry. Being the industry leader and tailwinds for the overall industry, the street is extremely optimistic about the company. The long-term outlook is bullish for the hotel industry and Indian hotels will remain our preferred bet despite short-term challenges.
Expecting recovery in FY23 in post-pandemic phase, ICICI Securities research report says, “We believe IHCL is well poised to benefit from the expected recovery in the hotel business cycle from H1FY23 (Apr’22) and are enthused by the company’s efforts to leverage its existing brand equity to focus on new business segments, focus on cost optimisation, asset-light management contract model to expand room portfolio, and net cash balance sheet post Rs40bn of equity fund raise through a rights and QIP issue in H2FY22. Key risks to our rating are fresh Covid waves globally and in India impacting demand and rise in costs denting margins.”
Rakesh Jhunjhunwala shareholding in Indian Hotels Company
Big Bull and his wife Rekha Jhunjhunwala have investments in this Tata group hotel. As per the shareholding pattern of IHCL for Q4FY22, Rakesh Jhunjhunwala holds 1,57,29,200 IHCL shares or 1.11 per cent stake in the company whereas his wife Rekha Jhunjhunwala holds 1,42,87,765 IHCL shares or 1.01 per cent stake in the company.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.