Gujarat Hotels Ltd: Buy

CMP: Rs.130.60

Photo: Booking.com

Gujarat Hotels Limited (GHL), an associate company of ITC Limited was incorporated in the year 1982. GHL owns the WelcomHotel Vadodara in Vadodara which is operated by ITC Limited under an Operating Licence Agreement.

The company has a high operating margin of above 90%, but hereto the stock did not perform too well in the bourses.

You can buy the stock near the supports of Rs.127-128 for short term targets of Rs.145 - 150; as the festival season beginning with Ganesh Chaturthi, followed by Eid and Durga Pooja is likely to be positive for the share holders.

It is more or less a stable and those who prefer low Beta scrips, can go for the same. But please do keep a SL of Rs.121, in case of any market crash.

I had earlier recommended the stock on 4th September, 2006 at Rs.52, after which it made a high of ~Rs.270 in 2013 - 2014.