Rakesh Jhunjhunwala stock retraces 18% from life-time high. Right time to buy?
Premium- Rakesh Jhunjhunwala portfolio: After climbing to life-time high of ₹268.95 levels in April 2022, Indian Hotel share price has been nosediving continuously
Rakesh Jhunjhunwala portfolio: After climbing to life-time high of ₹268.95 apiece levels on NSE in April 2022, Indian Hotels Company share price has been under sell-off heat for more than a month. In this period, this Rakesh Jhunjhunwala stock has retraced around 18 per cent from its all-time high levels. According to stock market experts, Indian Hotels share price is correcting because of the negative market sentiments. There is nothing wrong with the fundamentals of the company. They went on to add that the hospitality stock has immediate support at ₹200 to ₹205 levels whereas ₹174 is strong support for the counter.
Speaking on Indian Hotels share price outlook, Amarjeet Maurya, AVP - Mid Caps at Angel One Ltd said, "During the 4QFY22, Indian Hotels Co Ltd (IHCL) recorded revenue growth of around 42 per cent and adjusted profit of ₹58 crore against a loss of ₹117 crore in 4QFY21. IHCL is opening 60 hotels, which would add more than 7,500 rooms (currently the company has 20,581 operational rooms). Further, we expect the domestic hotel industry to perform better on back of improvement in demand for leisure travel, demand revival from corporates along with higher number of Covid vaccination, which would benefit the player like IHCL. Thus, we are positive on stock."
Calling Indian Hotel share retracement as mere profit-taking, Anuj Gupta, Vice President — Research at IIFL Securities said, "It is just a correction or profit booking. Trend and cycle of Indian Hotels Company share is positive and this may increase further. Now it has immediate support around ₹200 to ₹205 levels. Its next support place at ₹174 levels is strong support zone. Those who have this stock in their portfolio are advised to maintain stop loss at ₹174 levels and keep accumulating on every dip. for fresh investors ₹210-215 will be a good buying zone and one can enter the stock at these levels maintaining stop loss at ₹174 apiece levels for the target of ₹260 to ₹275 in a short term."
Anuj Gupta of IIFL Securities went on to add that the stock may go up to ₹320 levels once it closes above ₹275 per share levels.
Rakesh Jhunjhunwala shareholding in Indian Hotels Company
As per the shareholding pattern of Indian Hotels Company for January to March 2022 period, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have shareholding in this hospitality company. Rakesh Jhunjhunwala owns 1,57,29,200 Indian Hotel shares or 1.11 per cent stake whereas his wife Rekha Jhunjhunwala holds 1,42,87,765 or 1.01 per cent stake in the company.
After climbing to life-time high of ₹268.95 levels in April 2022, Indian Hotel share price has been nosediving continuously. Indian Hotel share price today is around 221 apiece levels, which is near 18 per cent lower from its all-time high.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.