HLVLTD - Hotel Leela Venture

Future Multi-Bagger

As mentioned in our earlier blog dated 11-Sep-2021, we had presented a detailed analysis on opening of market post Covid scenario, where-in we had mentioned about the stocks related to Hospitality / Hotel Sector is waiting for a big boom.

With the vaccination drive has already covered almost 80 percent of the workforce, airlines and transport facilities are coming back to normal, floating population will gradually increase requiring demand for hotels.

Hospitality is one of the sectors which were badly hit by the Covid lockdown will see a sheer change when markets are opening up. We had mentioned about some stocks related to this sector for keeping in the watchlist.

Hotel Leela Venture is a holding company which runs star hotels in India and outside in the name of The Leela. Due to pandemic the hotel business was down and the company had registered a loss Rs.-35 cr as on 31-Mar-2021 down from the 31-Mar-2020 figure of Rs. 193 cr profit.

Covid Lockdown relaxation has definitely given fillip to the hospitality sector including the HLVLTD as it can be evident from the stock price action in the recent weeks.

For readers understanding placed below the weekly technical chart of HLVLTD where-in the price action can easily be noticed.

The stock has registered a strong bullish Maruboju candle with a hooping 23% up from the previous week closing and it looks like it will clear the consolidation zone before it breaks out. The huge trade volume of 7.4 million vis-a-vis mere 2 million or less which were registered during past 2-3 weeks, validates the price action.

The stock is currently trading at 11.20 per share. With a SL at 8, T1 and T2 can be put near 18 and 24 respectively.

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Also read Easing of Pandemic-led Restrictions and its impact on Hospitality and Textiles Sector