Rise in costs, lower realisations could keep profitability under pressure
Shares of firms in the sectors have outperformed Sensex in November
Currently, the Street is ignoring shrinkage of balance sheets and delay in return to normalcy
While things have improved, market is ignoring balance sheet shrinkage and likely delay in getting back normalcy, say experts
According to reports, the Delhi Disaster Management Authority on Wednesday approved re-opening of all hotels in the capital besides allowing weekly markets on a trial basis
Indian Hotels, Chalet Hotels, EIH, TajGVK Hotels & Resorts, EIH Associated Hotels and Shopper Stop were up in the range of 10 per cent to 19 per cent on the BSE in the intra-day trade.
Expectations of a slow recovery, high fixed costs and debt worries are putting off investors
Hotel stocks are likely to remain under pressure until the situation comes under control
Hotel stocks are under pressure because the coronavirus outbreak could impact occupancies and, thus, drive down room tariffs
Expectations of muted performance in September quarter are factored in, but any miss with respect to H2FY20 estimates could hurt stock valuations further
Shares of hotel companies were trading higher in the intra-day trade on Monday with Savera Industries, Kamat Hotels, India Tourism Development Corporation and Asian Hotels rallying up to 11 per cent
Shares of hotel companies Hotel Leela, Kamat Hotels, Sayaji Hotels, TajGVK and Oriental Hotels rallied up to 20 per cent on BSE in the intra-day trade on Thursday, on expectations of robust growth.
With premium hotels best-placed to reap the benefits, stocks such as Indian Hotels and EIH should see a revenue uptick
Drive prices to 52-week highs