Maharashtra Chief Minister Uddhav Thackeray said on Sunday, February 21 that a strict lockdown could be implemented in the state as well as Mumbai if people don't follow the COVID-19 discipline.
When asked how this will affect hotels, cinema halls and restaurants, market expert Prakash Diwan replied, “The way some of them are shoring up results and gearing up for a much bigger fillip in terms of international travel opening up, the way airlines are gearing up I think things will look up. So you have to buy these stocks, definitely, there is still value available, East India Hotel, Indian Hotels – these are stocks that will benefit more on the resumption of international travel. This sector will probably play a big catch-up as and when things happen. So it is time to buy these and wait it out.”
Diwan is not positive on PVR.
“I would not jump into a multiplex stock but definitely hotel stocks for sure.”
He also thinks that the market will not very negatively react to CM’s announcement at this point in time.
There is enough business for all the banking players to increase their books, he said.
“I think IndusInd Bank will consolidate and move to the next 1,500 zones.”
On cement stocks, Diwan said, “I prefer some of the smaller names. Deccan Cement has clocked very good earnings, closing the year with an EPS of Rs 890 and it is still available at just about 6 times P/E multiple on that basis. So there is still value in the smaller names. Bigger names have probably got fancied a bit and hence expensive.”
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(Edited by : Ajay Vaishnav)
First Published: Feb 22, 2021 10:21 AM IST