Nitin Kunte, CMT on Multipie

$TajGVK Hotels & Resorts Ltd

𝐓𝐚𝐣 𝐆𝐕𝐊 𝐇𝐨𝐭𝐞𝐥𝐬 & 𝐑𝐞𝐬𝐨𝐫𝐭𝐬: 𝐁𝐫𝐞𝐚𝐤𝐨𝐮𝐭 𝐟𝐫𝐨𝐦 𝐭𝐰𝐨 𝐲𝐞𝐚𝐫 𝐫𝐚𝐧𝐠𝐞 𝐚𝐮𝐠𝐮𝐫𝐬 𝐰𝐞𝐥𝐥💯🎯

• Hospitality sector has been a key outperforming sector in CY22 as the stocks resolved out of multiyear underperformance as tourism picked up after two year Covid induced interval

• Taj GVK’s share price is resolving out of two years of base formation and surpassing pre-Covid levels backed by above average trading volumes. The stock is also outperforming over past few weeks as it witnessed resilience during corrective phase of September 2022

• The weekly MACD is seen diverging from its nine period’s average signifying strong momentum from a medium term perspective

#ICICIDirect

𝐅𝐮𝐧𝐝𝐚𝐦𝐞𝐧𝐭𝐚𝐥 𝐩𝐫𝐢𝐦𝐞𝐫👇🎗️

• FY23 began on strong note for hotel sector in terms of growth and margin expansion. With the full re-opening, the corporate demand and MICE segment also joined the growth league in Q1FY23 while leisure continued to perform well

• In Q1FY23, average room rates was reported to be even higher by 20-25% vs pre-Covid levels. This led to sharp revenue growth of over 24% vs. pre-Covid levels. Hence, the change in the strategy from occupancy led growth during pre-Covid era to ARR led growth was clearly visible in the current quarter

• In terms of rooms supply, we might expect launch of new hotel projects to get delayed due to higher land and input costs that would augur well for the existing branded players. Further, hotel players are now leaner in terms of costs that are sustainable in nature

• On a replacement basis, the stock is trading at EV/room of 1.1 crore, which leaves enough scope for decent upside from current levels for us

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Nitin Kunte, CMT

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