Rakesh Jhunjhunwala stock: IHCL stock hits new high today; gains nearly 25% in 4 sessions

This Rakesh Jhunjhunwala backed hotel chain Indian Hotels Company Limited (IHCL) shares has jumped near 25 per cent in the last four days. The stock on Thursday touched a record high of Rs 185.05 per share, gaining nearly 7 per cent on the BSE in the intraday trade.

Ace investor Rakesh Jhunjhunwala holds 25,010,000 shares or 2.1 per cent stake along with his wife Rekha Jhunjhunwala, as per the shareholding pattern available on the BSE shows.

The hotel stocks have been rallying since Monday, after Prime Minister Narendra Modi indicated a higher focus to tourism states in the country, and on hopes of business revival following unlocking of the economy and pick-up in travel.

Taj Hotels is one of the iconic brands of Indian Hotels.

The Tata Group holds 40.75 per cent stake in Indian Hotels through Tata Sons (38.09 per cent stake) and other Group companies. Tata Sons has extended financial support to Indian Hotels over the years, by subscribing to various equity-raising activities of the company. 

The Tata Group company stock has gained around 32 per cent alone in the month of September, as compared to a 3.2 per cent rise in the S&P BSE Sensex.  

The rating agency ICRA expects the company’s revenue and profits to reach pre-Covid levels only over the medium term, although FY22 is expected to be significantly better than FY21.

The longer-term perspective for Indian Hotels looks good, says market analyst Simi Bhaumil who was bullish on the overall sector. The unlock theme is playing well for the hotel industry as the hotel bookings have been surging, it seems, she added.