Thomas Cook can return well over the next 1-2 years: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his views on Thomas Cook.

ET Now: Have you looked at Thomas Cook at all? It seems to be an interesting play ever since the company acquired Sterling Holidays. Prem Watsa in his annual letter too spoke very highly about his India investments; the stock has performed reasonably well. Do you like Thomas Cook?

Neeraj Deewan: Yes. I expect this stock to continue to do well. The overall sentiment in the economy has improved in the last one year. You are likely to see a rise in leisure spending. The fact that, holiday season is drawing near, one can expect good performance this quarter.

Thomas Cook and similar stock in the entertainment or travel industry should do well from here on for the next one to two years because they are in the industries, which are all about sentiment.

Sentiment is a very important factor which helps change the perception, and the spending of people. The stocks from these sectors are the clear beneficiaries and gainers for lift in sentiment.
ET Now:Then it could be the same thing for Mahindra Holidays as well?

Neeraj Deewan: Yes. Mahindra Holidays and other entertainment-linked stocks like PVR and even Wonderla Holidays could do well. These are the kind of stocks which should do well with the rise in spending. The stocks could see short term momentum as holiday season is approaching. They are good long-term bets because they have been performing as far as the balance sheets are concerned.