In chat with Anil Singhvi, Siddharth Sedani picks 4 travel and tourism stocks, including one Tata Group share, for INVESTORS - Check their price targets

In a special edition of the SID KI SIP show, market analyst Siddharth Sedani speaking with Zee Business Managing Editor and Market Guru Anil Singhvi came up with potential travel and tourism stocks for investors. He suggested investors to add these stocks in their portfolio for bumper returns.

Sedani said that after a long period #SidKiSIP has come to give the lifeline. He said, “The COVID-19 situation has brought everything to a standstill position. But now everyone is coming back, and they are planning to take 'revenge' via Revenge Travel. The Theme for today is also - Revenge Travel.”

Earning opportunities will be created from 'Revenge Travel'! The government’s initiative will lead to the growth of the tourism industry. There will also be a big benefit of increasing vaccination and unlocking.

He added that earlier, people who used to travel 3-4 times in a year are now doing this once in a year, and this is what Revenge Travel is. Around Rs 5 lakh crore consumption expenditure is expected this year. It is likely that the tourism industry can contribute 10 per cent in the GDP in coming years. From over 20-30 per cent occupancy rate in the hotels, it has now reached to over 60 per cent. And the government has played a bigger role in promoting the tourism industry.

The Market Guru added that Revenge Travel means to travel to take revenge! People who have been packed and were inside for past one and half year are now out to take this revenge. Let’s see which are the stocks that comes under this, there targets and allocations.

Sedani said that there are 4 companies under this Revenge Travel. The first one is Indian Hotels, which is owned by the Tata Group. For Tata Group's Indian Hotels, the target is Rs 175, return expected in 1 year is 17 per cent, and the allocation is Rs 30 out of Rs 100. The group owns many chains, including Taj Vivanta. They have a huge dominance in the Indian hotel industry. So, Indian Hotel is a good pick.

'Revenge Travel' से बनेंगे कमाई के मौके !

सरकार की पहल से होगी टूरिज्म इंडस्ट्री की ग्रोथ

वैक्सीनेशन बढ़ने और अनलॉक का भी मिलेगा बड़ा फायदा...#SIDKiSIP - Siddharth Investment Portfolio

थीम के हिसाब से किस शेयर में कितना एलोकेशन करें?#Investment @AnilSinghvi_ @s_sedani05 pic.twitter.com/mYOtvOp2vG

— Zee Business (@ZeeBusiness) September 3, 2021

He added that the second company in this theme is VIP Industries. So, this luggage company is the largest company in Asia with 50 per cent market share. The unorganised segment is huge, so this company is considered to be the king in the organised segment. In the next 2 years, the revenues can surge up to 50 per cent. VIP Industries is one of the best companies in this theme.  

The target for VIP Industries is Rs 568, return expected in a year is 17 per cent and allocation for the same is 30 per cent, Sedani added.

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He added that the third company in this Revenge Travel theme is Easy My Trip. The target will be Rs 550, the return can be expected 14 per cent in a year, and the allocation will be 20 per cent. Easy My Trip deals in travel and tourism bookings. The company has over 60,000 distributers, agents, balance sheet is strong. It is a debt-free company. The company has recently tied up with Just Dial.

Sedani mentioned that the fourth company that provides resorts and travel provisions is Mahindra Holidays. The company has 94 resorts all over India. The target for Mahindra Holidays is Rs 430, 28 per cent return can be expected, and the allocation can be 20 per cent. The occupancy level is high, almost 85 per cent. Mahindra Holidays is also a debt-free company.

These are the four companies that are under the ‘Revenge Travel’ theme. The government is also looking to promote travel and tourism.