India has witnessed a surge in booking of flights & hotels by all segments of customers , particularly the luxury ones. Results of hotel stocks such as EIH , INDIAN HOTELS AND TAJ GVK have proven that the serious demand is back.
In the recent 4 weeks we have seen surge in volume and prices of hotel stocks. some have recently rallied over 30%. One such decent hotel stock that has good value thats yet to be unlocked is ITC.
In recent sell off in the market ,ITC stood firm and for the first time in last 24 months its overall beta has improved and is showing a convex profile ( means when market falls it falls less, but when markets rebound it fires more).
The FMCG power to pass on the prices for non discreationary goods along with the boom inoverall economy will benefit both the FMCG & Hotel business for ITC.
On a relative valuation scale , ITC Hotels are fairly / under priced. If the hotel business demerger is announced in this fiscal year the stock may rally further and reach levels of 374 by march 2023. (Cmp : 323)
We recommend to add this to your watchlist and track all announcements !!!