New Delhi: Several Indian stock market investors take a cue from Rakesh Jhunjhunwala's portfolio to strategise their investment plans. The big bull of Indian bourses, Jhunjhunwala, is known for making investments in multibagger stocks that have provided impressive returns to investors.
One such stock in his portfolio that can provide fantastic returns to investors is the Indian Hotels Company (IHCL), according to brokerage firms. IHCL, which is a Tata Group company, is one of the leading hotels in India.
According to brokerage house Nirmal Bang, IHCL could jump up to 40% in the coming weeks, according to a report by ZeeBiz. The brokerage house was hoping for a recovery in the travel segment as COVID-19 cases were on the decline in India.
However, with the recent discovery of a new variant, the brokerage house may change its rating on IHCL stock. The stock dipped 11.24% on Friday (November 26), soon after the news of a new COVID-19 variant of concern started making headlines around the world.
Jhunjhunwala reportedly holds a 2.1 per cent stake in IHCL, according to the current shareholding pattern. The stock in 2021 has already provided more than 51% returns to investors.
Previously, Nirmal Bang had pointed out that there is a V-shaped recovery in the travel segment that could benefit Indian Hotels Company (IHCL). The management has also reportedly highlighted that the hotel sector is witnessing strong growth, which is expected to continue in FY22. The brokerage house has set a target price of Rs 294. Also Read: Amazon to increase Prime membership fees by 50%: Check details here
One of the major reasons behind the strong demand in the hospitality sector is the ongoing festive season and the upcoming Christmas and New Year holiday season. Both factors could improve the company in the coming weeks. Also Read: IPOs This Week: Star Health, Tega Industries to launch initial offers - Check subscription dates, price band