Veteran expert Hemang Jani said that hotel and hospitality space was in momentum for quite some time, and the cricket world cup will only add more to this run-up.
As the ICC World Cup 2023 kicked off on Thursday, Dalal Street veteran Hemang Jani continues to remain positive on select stocks from travel and tourism, consumption, QSR and hospitality space. He believes that a host of companies will reap the benefit from this month-and-a-half long cricket fiesta.
India is hosting the ICC Cricket World Cup 2023, after a gap of 12 years. Previously, India was a co-host of the world cup with Bangladesh and Sri Lanka. It is the first time when India is solely hosting the men’s 50-over world cup. Kicking off on Thursday, the cricket’s mega-event will conclude after 45 days on November 19.
Jani said that hotel and hospitality space was in momentum for a quite some time, and the cricket world cup will only add more to this run-up. Not only cricket world cup, Diwali break, year end and winter break will lead to consistent occupancy and tariffs. in the coming weeks, he said.
Jani has picked Lemon Tree Hotels, citing its reasonable valuations despite recent strong outperformance from the hotel space, with a target price of Rs 140. Shares of Lemon Tree Hotels have gained about 52 per cent in the last six months, while the stock is up 40-odd per cent in the year 2023 so far.
Jani is also positive on the InterGlobe Aviation (IndiGo) from the Aviation considering its expansion in the high profitable and high margin international routes, sound management pedigree and strong operational performance. He expects the stock to hit Rs 2,820-levels in the coming months. It is over 25 per cent in the last six months, while the stock is up 35 per cent in the last one year.
From the railway pack, Jani is bullish on BEML. The market expert said that the stock is not only a railway play, to benefit from government’s infra push, but also diversification in defence and logistics space, with being a peculiar case of strategic disinvestment. He has a target price of Rs 2,670 on the stock. BEML is up 81 per cent in the last six months, despite falling 7 per cent in a month.
Commenting on QSR space, Jani has picked Devyani International with a target price of Rs 250 per share, citing its discount valuations compared to the larger peers. Jani said that the company has decent offerings for the investors. Devyani International has rallied about 102 per cent since April 2023.
Jani also prefers Zomato from the hospitality space with a target price of Rs 125. “Despite doubling from its lows around Rs 50-55 levels, the stock is likely to move higher considering its improved financial performance, increasing user-base, order value and convenience offered to the users.”
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