Rakesh Jhunjhunwala Portfolio: ICICI Securities rally on this share of Tata Group

“Currently, the stock remains above the 50-day EMA, which has offered several incremental buying opportunities since June 2020. Hence, it offers fresh entry opportunities with favorable risk reward as we believe. That unlocking the economy will also support our technological rationality.” The brokerage and research firm said in a note.

ICICI Securities buy recommendation on Indian hotel stocks. Comes with a target price of 264 per share and stop loss of 192 with a time horizon of three months as it considers the ongoing crisis in the industry to restrict the overall room supply for the next 3-4 years which will augur well for the branded players like Indian Hotels.

With a room inventory of 19,425 rooms, Indian hotels are diversified in the hotel industry through brands such as Taj, Vivanta, Cellusions and Ginger brands.

With a view to become debt free, the Board has approved 4,000 crore fund raising. According to the brokerage, apart from better cash flow and equity infusion, disinvestment of non-core assets also helps the company become debt free.

“Indian Hotels witnessed a sharp rebound in Q2FY22; Revenue reaches 72% of pre-Covid levels. The domestic segment reached 86% of the pre-Covid revenues, while the international portfolio reached 62% of the pre-Covid levels. We expect the business to recover to 97% of the pre-Covid levels,” the note highlighted.

As per the shareholding pattern of BSE, Rakesh Jhunjhunwala And his wife Rekha Jhunjhunwala holds 1.05% stake in the Tata group company as of September 2021.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.