Picture this: It’s the year 2020 and the world has been hit with an outbreak of a deadly virus that has brought the entire planet to its knees. One of the industries that suffered the most was the hospitality sector. Posh hotels that were once bustling with activity were now nothing but ghostly, abandoned buildings, as people were confined to their homes to curb the spread of the virus. It seemed like the hospitality sector was dead and buried, with no hope of ever recovering.
Fast forward to 2023 and the world is a different place. The pandemic is now under control and people are once again traveling and exploring the world. The hospitality sector is firing on all cylinders and there are many stocks that are trading at or near their 52-week high levels.
But there’s one stock that stands out from the crowd, i.e. Chalet Hotels. This company has been on a tear and it looks poised for even more momentum in the coming months.
Chalet Hotels is part of the K Raheja Corp group. Chalet is owner, developer, asset manager and operator of high-end hotels and a hotel led mixed-use developer across India. The Company’s portfolio comprises seven fully operational hotels representing 2,634 keys, across mainstream and luxury segments and commercial spaces.
Chalet marked its debut in leisure segment with the acquisition of The Dukes Retreat – Lonavala. The Company signed its first asset in North India, with the proposed new hotel at Terminal 3 of Delhi International Airport.
On Friday, the stock has skyrocketed over 5% to Rs 425 and with this the stock has registered a fresh 52-week high. This strong up-move in the stock prices has propelled the stock to witness breakout of stage-1 consolidation pattern. This pattern is a 30-week long consolidation pattern and interestingly, the breakout has been seen on the back of robust volume as volume recorded so far for the day is above 9 lakh shares which is thrice the 30-days average volume of 3.09 lakh shares per day.
As the stock is trading at a fresh 52-week high the stock is trading above its all key short- and long-term moving averages. What’s more striking is the fact that all these moving averages are trending up and are in the desired sequence. The stocks EPS strength stands at 69 and has a RS Rating which is a relative strength rating of 72 which is a fair score but it is improving. Buyer demand at A+ is evident from the recent demand for the stock as institutional investors have increased their holding in the stock in the recent quarter ended March 2023.
Considering the above factors, momentum traders can have this stock on their watchlist. The stock has delivered multibagger returns as it has jumped over 200% in the last three years!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.