Hotels, Restaurants stocks surge up to 12% as Maharashtra ease Covid norms – brokerage bullish on this hotel share

Share prices of hotels and restaurants companies jumped up to 12 per cent during Thursday’s session on the BSE intraday after the Maharashtra government on Wednesday eased covid norms and allowed hotels, restaurants, theatres among other recreational places to operate with full capacity from March 4. 

In the hotels category, Chalet Hotels surged most by over 11.5 per cent, followed by Lemon Tree Hotels up 7.5 per cent, Indian Hotels up 4.5 per cent, EIH Hotels up almost 4 per cent and TajGVK Hotels up over 3 per cent among others on the BSE intraday.  

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While in the restaurants category, Speciality Restaurants surged most by over 6 per cent, followed by Devyani International up almost 3.5 per cent, CCL Products up almost 3 per cent, Westlife Development up nearly 2.5 per cent and Sapphire Foods up 2 per cent on the BSE intraday. 

In comparison, the S&P BSE Sensex is witnessing minor gains up 0.32 per cent intraday today amid high volatility. 

According to the PTI report, “The Maharashtra government on Wednesday allowed shopping complexes, restaurants, cinema halls and theaters to operate at 100 per cent capacity in 14 out of 36 districts in the state, including Mumbai.” 

While social, sports, entertainment, academic, cultural, religious, political and festival-linked events including those related to marriages and funerals and other gatherings and congregations are now permitted in these districts with attendance at 50 per cent of the capacity of the venue, it said. 

The brokerages are bullish on the theatre, hotel and restaurant companies’ stocks as the footfall in these recreational places likely to rise in Maharashtra. In this regard, JM Financial picks Chalet Hotels a best bet with an upside of nearly 26 per cent and sets a target price of Rs 330 per share.