You can keep an eye on Indian Hotels and Karur Vysya Bank for investment. Due to strong fundamentals in these stocks, the brokerage house has given investment advice.
Rakesh Jhunjhunwala Portfolio: The portfolio of stock market veteran Rakesh Jhunjhunwala is being discussed among retail investors. Many investors keep in mind which shares Rakesh Jhunjhunwala is buying or selling. On that basis they also build their portfolio. Anyway, many stocks in Rakesh Jhunjhunwala’s portfolio have given high returns. If you also want to invest in any of his favorite stocks, then there is a good chance. You can keep an eye on Indian Hotels and Karur Vysya Bank for investment. Due to strong fundamentals in these stocks, the brokerage house has given investment advice.
Brokerage House Motilal Oswal has an investment advice on Indian Hotels and has a target price of Rs 278. In terms of current price of Rs 231, 20% return is possible in this. The brokerage says that the management is engaged in preparing the growth roadmap. Management’s focus is on sustainable double digit revenue growth of the company. At the same time, the company has a target to increase margins through focus on new business. The management is also working on strengthening the balance sheet of the company and aims to become a debt-free company.
The company works on the asset light business model. Like FY22, the strong recovery is expected to continue in FY23 and FY24. Once the economic activity becomes normal, then the ARR will improve. After the lifting of restrictions related to Kovid 19, the occupancy rate is increasing and further growth is expected in it. The stock’s outlook looks better on the back of cost realization effort, rising F&B income and higher income from management contracts.
Rakesh Jhunjhunwala has a 2.1 percent stake in Indian Hotels Company. The company has 30,016,965 shares in his portfolio.
Karur Vysya Bank
Brokerage house ICICI Securities has given buying opinion in the shares of Karur Vysya Bank. The target for the share has been given at Rs 70. Current price is around Rs 46. Therefore, the stock can get a return of about 52 percent. The brokerage says that the asset quality of the bank is improving. Credit growth is expected to improve going forward. The earnings of the bank in the March 2022 quarter have been the highest in the last 18 quarters. The return on asset (RoA) of the bank is around 1 per cent. The bank has done credit cost control and it is in the range of 1 percent. If the macro conditions improve further, the bank will get the benefit of this. Karur Vysya Bank’s profit has more than doubled to Rs 213.47 crore during the March 2022 quarter.
According to the shareholding pattern of Karur Vysya Bank for the March 2022 quarter, Rakesh Jhunjhunwala holds 4.5 per cent stake in it. He has 35,983,516 shares of the company.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)