Chalet Hotels share price jumped over nine percent on Thursday and touched an intraday high at Rs 191.70 on the BSE.
Antique Stock Broking expects Chalet Hotels to witness strong revenue growth going ahead on the back of both cyclical and secular tailwinds, and has initiated coverage on the stock with a ‘buy’ recommendation and a target price of Rs 400 which implies a 109 percent upside from today’s high.
The hotel company's revenue is expected to grow at 55 percent CAGR till FY25 and operating margin is likely to improve by 1,000 basis points from pre-Covid levels of 32 percent, according to the brokerage firm.
With the domestic economy re-opening and several investors betting on reflation trade, stocks in the hotel, aviation and infrastructure sectors have seen buying traction lately.
The recovery in June and July has been sharper than anticipated, the company management had said in August. Government initiatives in re-opening various cities and states coupled with improving consumer sentiment augur well for a swift revival of the sector.
Chalet Hotels’ share price has risen over 27 percent in one year.
At 10:51 am, Chalet Hotels share was trading 5.7 percent higher at Rs 185.20 on the BSE.