Stock of the day - Chalet Hotel - Target INR 200 - Angel Broking

Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

Chalet Hotels is part of the K. Raheja Corp, and is an owner, developer and asset manager of high-end hotels in key metro cities in India. The Company's hotel comprises six operating hotels in the key Indian cities of Mumbai, Hyderabad, Bengaluru and Pune representing 2,554 key. Post sharp drop in occupancy in the month of April the company has reported strong pick up in occupancy for June through August. The company has posted a better than expected set of numbers for Q1FY21 as the commercial real estate segment provided stability to numbers given the sharp fall in the hospitality revenues. Occupancy levels have already started improving from July and expected to improve gradually over the next few months especially given that the Maharashtra Government has allowed hotels to operate at 100% capacity from September as compared to 33% capacity earlier. Given that almost 68% of the company's rooms are located in the state of Maharashtra we believe that Chalet Hotel will be one of the biggest beneficiaries of the Government's order. We expect occupancy levels will keep on increasing gradually from here on and witness a significant improvement post the festive season with operations normalizing in the second half of FY22.

Shares of Chalet Hotels Ltd was last trading in BSE at Rs.155.55 as compared to the previous close of Rs. 154.95. The total number of shares traded during the day was 16649 in over 558 trades.

The stock hit an intraday high of Rs. 157 and intraday low of 154.1. The net turnover during the day was Rs. 2593276.

Source : Equity Bulls

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