COMMON WEALTH GAMES 2010 ………….. SHOWERING COMMON WEALTH TO THE SECTOR !!!!!!!

Following is a special Report on the three leading Hotel Stocks in India. The sector seems to be ready for the big move and to outperform the broader market over the next few months. As we all know that the markets discount all the news and earnings well in advance, so it would not come to anyone’s surprise if these stocks move sharply even before the big event. The report consists of the basic fundamentals and price history of the companies as well as the technical view on the stocks.

EAST INDIA HOTEL (EIH)

BSEId : 500840    NSE Id : EIHOTEL    -ISIN Id : INE230A01023

INDUSTRY- HOTELS
Market Cap -5,853.05
Book Value – 30.01
EPS (TTM) – 3.85
Price/Book – 4.96
Face Value – 2.00
P/E – 38.69
Div(%) – 60.00
Industry P/E-  21.30

PRICE INFORMATION

All Time High – 855.10
All Time Low -72.95
52 Week High -154.90
52 Week Low -72.95

BUY AROUND 135-140
EXPECTED RETURN- AROUND 50 %
TARGET – RS.200-220
TIME FRAME -3 TO 4  MONTHS

Daily chart

WEEKLY CHART

RECOMMENDATION- The stock has given a breakout from a consolidation (Symmetrical Triangle), which it formed over the last one year from October 2008 to October 2009. The breakout from this ideal consolidation is accompanied by the huge volumes also (as can be seen on the Daily Chart).The weekly chart also suggests a bullish pattern formation like Triple Bottom and the volumes in the preceding week are phenomenal. We recommend a Strong Buy on the stock around 140-145 levels with closing stop loss below 130 for targets of 200-220.

REMEMBER- TREND IS YOUR FRIEND………………………

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INDIAN HOTELS COMPANY

BSEId : 500850 NSE Id : INDHOTEL ISIN Id : INE053A01029

INDUSTRY- HOTELS

Market Cap -5,950.14

Book Value – 42.13

EPS (TTM) – 2.62

Price/Book – 1.95

Face Value – 1.00

P/E – 31.39

Div(%) – 120.00

Industry P/E- 21.30

PRICE INFORMATION

All Time High – 1583.00
All Time Low – 34.05
52 Week High – 84.25
52 Week Low – 34.05

BUY AROUND 70- 75

EXPECTED RETURN- AROUND 100 %

TARGET – RS.130-150,

TIME FRAME -4 TO 6 MONTHS

DAILY CHART

WEEKLY CHART

RECOMMENDATION-Another similar consolidation on the daily charts for around 4 months in the form of Ideal Symmetrical Triangle with diminishing volumes during the consolidation phase and a breakout on the upside with spectacular volumes . On the weekly chart managed to cross the resistance trend line with good volumes and balked over that level for few weeks before a fresh rally. Concluding here, we reiterate a BUY on the stock around 70-75 levels with a closing Stop loss below 65 for targets of 130-150.

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HOTEL LEELA VENTURES

BSEId: 500193 NSE Id: HOTELEELA ISIN Id: INE102A01024
INDUSTRY- HOTELS
Market Cap -1,505.63
Book Value – 18.59
EPS (TTM) – 2.98
Price/Book – 2.14
Face Value – 2.00
P/E – 13.37
Div(%) – 20.00
Industry P/E-  21.30

All Time High – 444.00
All Time Low – 9.75
52 Week High – 43.20
52 Week Low – 9.15

BUY AROUND 35

EXPECTED RETURN- AROUND 85 %

TARGET – 65

TIME FRAME – 4 TO 6 MONTHS

WEEKLY CHART

RECOMMENDAION- The stock made a Head & Shoulder Bottom on the weekly chart and also managed to close above its long term downward sloping trend line consecutively for few weeks. Both of the price move trigger for a trend reversal on the cards. Last but not the least volumes have also supported the breakout above its neckline. A Buy on this stock is inevitably recommended around 35 with stop loss of 30 for target of 65.