Indian Hotels can touch Rs 125 in near term: Rajesh Jain

In a chat with ET Now, Rajesh Jain, market strategist, talks about the outlook of Indian Hotels.

How does Indian Hotels look on the charts?

Indian Hotels continues to add to its inventory. We have seen the company follow a considerate effort to increase inventory at the same time go asset light. They have finally put in place their multi-brand approach to the hospitality sector in India. The biggest concern on Indian Hotels has been the huge debt and the company has been working on debt mitigation. If you look at the current scenario in the hotel sector, occupancy levels are close to 80-90% and the room rates are at an all-time high and this is despite the monsoon having set in across the country.

Indian Hotels therefore continues to be an act of faith. It also continues to be a stock where you buy for at least 18 months to 24 months' period. I believe the stock has the potential to give you even a 2x over a 36 month period but for the near term of one year, I would give a target of Rs 125. The company has accelerating traction in both domestic and international and we should see volume upsides from the commissioning of its New York property and a host of tier 2, tier 3 budget hotels within the country.