6 Best Performing Stocks From Hospitality Sector

As the economy opens up as a result of India's robust vaccination campaign, some stocks in the hotel sector are outperforming the markets. Even as India's festive season begins, investors believe the hospitality sector will benefit the most from the robust immunization campaign. Due to the stringent lockdowns, the travel and hotel industries in India were the most negatively hit. Here are some of the best-performing stocks from the hospitality sector.

Indian Hotels

The Indian Hotels Company Limited runs a range of hotels, resorts, jungle safaris, palaces, spas, and in-flight culinary services. It is a wholly-owned subsidiary of the Tata Group.
Only 2.88 percent of trading sessions in the last 16 years had intraday gains of more than 5%. The stock returned 61.31 percent over three years, compared to 87.94 percent for the Nifty Midcap 100. Indian Hotels Company Ltd., founded in 1902, is a Mid Cap company in the Tourism & Hospitality sector with a market capitalization of Rs 24,671.17 crore.

Chalet Hotels

Chalet Hotels Limited is a leader in the hospitality industry when it comes to asset management and development. The Company's hospitality platform has seven operating hotels, including one with a serviced apartment, in the important Indian cities of Mumbai, Hyderabad, Bengaluru, and Pune, totaling 2,554 rooms.
Chalet Hotels Ltd., founded in 1986, is a Mid Cap business in the Tourism & Hospitality sector with a market capitalization of Rs 4,884.69 crore. In the quarter ending June 30, 2021, the company reported a total income of Rs 75.28 crore. Although there was a YoY growth of 27.71 percent, there was a -26.26 percent drop in QoQ. In the fiscal year ended March 31, 2021, the company spent 51.63 percent of its operational revenues on interest charges and 30.8 percent on labour costs.

Byke Hospitality

In the last five years, the company's ROE has been steadily falling. The majority of profits were distributed as dividends to stockholders last year. The stock returned -50.3 percent over three years, compared to 86.43 percent for the Nifty Smallcap 100. The Byke Hospitality Ltd., founded in 1990, is a Small Cap company in the Tourism & Hospitality sector with a market capitalization of Rs 148.56 crore.

Mac Charles (India) Ltd

 

In the fiscal year ended March 31, 2021, the company spent 37.4 percent of its operating revenues on interest charges and 10.16 percent on labor costs. The stock returned 47.57 percent over three years, compared to 86.43 percent for the Nifty Smallcap 100. In the quarter ending June 30, 2021, the company reported a total income of Rs 7.8 crore. Although there was a YoY growth of 21.91 percent, there was a -24.61 percent drop in QoQ.

Mac Charles (India) Ltd., founded in 1979, is a Small Worth company in the Tourism & Hospitality sector with a market cap of Rs 605.33 crore.

EI Hotels

Only 2.5 percent of trading sessions in the last 16 years had intraday drops of more than 5%. Stock returned -11.68 percent over three years, compared to 87.94 percent for the Nifty Midcap 100. For the fourth quarter in a row, the company has lost Rs 113.23 crore. In a recent research report, ICICI Direct gave the stock a buy recommendation.

Indian Tourism

India Tourism Development Corporation Ltd., founded in 1965, is a Mid Cap company in the Tourism & Hospitality sector with a market capitalization of Rs 3,361.30 crore. The stock returned 42.12 percent over three years, compared to 86.43 percent for the Nifty Smallcap 100. In the quarter ending June 30, 2021, the company reported a total income of Rs 47.6 crore. Although there was a YoY growth of 48.31 percent, there was a -43.54 percent decrease in QoQ.

Best Performing Stocks From Hospitality Sector

Hotel Stocks	Price in Rs.	Market cap in Rs.	1-Y return
Indian Hotels	207.70	24.70TCr	113.24%
Chalet	241.65	4.95TCr	74.48%
Byke Hospitality	37.05	148.56Cr	177.53%
Mac Charles	462.05	605.33Cr	95.87%
EI Hotels	142.75	8.93TCr	85.03%
India Tourism Development	393.80	3.38TCr	75.45%

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. This article is for educational purpose.