Unlock Thematic: Unlock beneficiaries offer favourable risk reward - ICICI Direct

Posted On : 2022-02-22 10:02:06( TIMEZONE : IST )

Unlock Thematic: Unlock beneficiaries offer favourable risk reward - ICICI Direct

Top Picks: Easy Trip Planners, Inox Leisure, Mahindra Holiday & Resorts, Taj GVK Hotels & Resorts

  • In this report, we are focusing on companies that are poised to benefit from complete or near complete unlocking post two years of Covid restrictions, where many quality stocks have undergone healthy price/time correction and are a favourable risk-reward proposition
  • The unlock theme portfolio is aimed at focusing on companies with strong brand and product portfolio, which caters to the needs of leisure, tourism and entertainment related segments that are set to benefit the most from unlocking of the economy. The portfolio gives exposure to companies having a diversified presence along with high potential that supports future growth

Easy Trip Planners
  • The Tourism industry is regaining upward momentum post underperformance during Covid phase. The unlocking of the economy would benefit tourism sector. We believe, Easy Trip is a good proxy play for the tourism sector. The stock underwent slower pace of retracement as in the past five months it retraced 50% of preceding five month's rally (Rs. 161-718), indicating robust price structure. Hence, it offers fresh entry opportunity with favourable risk reward set up
  • The 100 days EMA acted as strong support as on multiple occasions dip towards 100 days EMA offered an incremental buying opportunity since May 2020

Inox Leisure
  • The stock has formed a strong higher base at the lower band of rising channel that offers a fresh entry opportunity with favourable risk reward as we believe unlocking of the economy would also support our technical rationale
  • Key point to highlight since August 2020 is that, barring one instance, on multiple occasions mean reversion to 100 days EMA offered fresh entry opportunity, highlighting inherent strength
  • On the oscillator front, Weekly 14 periods RSI has generated a buy signal thus validates positive bias

Mahindra Holidays & Resorts
  • The hospitality sector has recovered from Covid lows and many stocks within the sector are attractively priced at current juncture. Mahindra Holidays is our top pick, which has undergone decent price/time correction and is currently poised at key support
  • Over the past four months, the stock has retraced its May-October 21 rally (142-267) by 61.8% and formed base near key support of Rs. 190 as it is confluence of 52-week long term moving average and rising trend line from CY20 lows

Taj GVK Hotels & Resorts
  • The fast vaccination drive and settling of omicron cases makes us believe the ban on international tourist will be gradually eased. TAJGVK Hotels being the premium hotel player will be the key beneficiary of unlocking of the economy that would help share price to regain upward momentum after multiyear underperformance
  • The stock price has been undergoing a strong base formation at the lower band of 15 years contracting triangle backed by strong volumes, highlighting accumulation at lower levels. The ongoing higher base formation at long term 10-month average provide favourable risk-reward setup

For details, click on the link below: Link to the report

Source : Equity Bulls


UnlockThematicReport ICICIDirect EasyTripPlanners InoxLeisure MHRIL TajGVKHotelsandResorts