Street signs: Hospitality in focus, Vedant Fashions GMP at 5%, and more

Hospitality in focus as curbs ease

Brokers are advising clients to build long positions in hotel and restaurant stocks on hopes of a sharp uptick in business following easing of Covid-related curbs. Last week, Maharashtra decided to lift night curfew and allowed restaurants to operate at 50 per cent capacity. “There is a lot of pent up demand. So we will see hotels and restaurants do brisk business. Also, weddings and celebrations are taking place in full swing following easing of news,” said an analyst. He expects shares of Indian Hotels, Jubilant FoodWorks, Speciality Restaurants, and Burger King to do well.

Vedant Fashions GMP at 5%

Shares of ethnicwear maker Vedant Fashions are changing hands at 5 per cent premium over its IPO price in the grey market. The company’s Rs 3,149-crore IPO opened on Friday and was subscribed 14 per cent on day one. The Kolkata-based firm has already raised Rs 945 crore from anchor investors. The price band for the IPO has been set at Rs 824-866 per share. However, there is demand for shares at Rs 910 in the grey market, said people in the know. At the top-end, the company is valued at Rs 21,017 crore.

Vehicle financiers on analysts’ radar

Analysts are of the view that shares of vehicle financiers can be good long-term bets, given the hopes of a strong cyclical recovery. The commercial vehicle (CV) sales are closely linked with the economic growth, which is expected to pick pace going ahead. Analysts estimate CV sales to grow at a compounded annual rate of 20 per cent until FY25. Vehicle financiers with a track-record of managing business cycles stand to gain the most, they say. Diversification into segments like consumer finance, housing, and SME loans by some of these companies can prove to be healthy. Cholamandalam Investments, Mahindra and Mahindra Financial Services, and Sundaram Finance are among the stocks in this space, analysts are positive on.