new Delhi. There is a steady decline in the cases of Kovid-19 and it is believed that this epidemic is over now. Normal life and economy has also started getting back on track. With the removal of almost corona restrictions by the states, there has been a spurt in business activities.
Brokerage firm SBI Securities has also said in its report that the Indian economy has made a strong comeback and some high-frequency indicators also confirm this. Looking at the positive signals from high frequency economic indicators, the brokerage firm is anticipating strong returns in the coming 12 months in four sectors.
Achhe din for multi plex business (Multiplex Business)
SBI Securities says that PVR Ltd and Inox Leisure Ltd have made a good recovery in the footfall in the quarter of December 2021 due to the reduction of restrictions. The footfall is likely to exceed the pre-Covid-19 levels once the restrictions are completely lifted in late February 2022 or early March 2022. Average ticket price (ATP) and cost per person (SPH) have risen above pre-pandemic levels. SBI Securities expects double digit earnings growth in PVR and INOX during the FY 2022-24 period. This sector will give excellent returns to the investors.
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Raunak will return to travel business
Air traffic was badly affected due to Kovid-19. But in the first nine months of the financial year 2022, with an annual growth of 103% to 132 million passengers, there are signs of it getting back on track. In line with the recovery in passenger air traffic due to further easing of travel restrictions, the luggage industry is expected to resume sales. Due to this, VIP Industries and Safari can benefit due to increase in passenger traffic.
The brokerage believes that due to the growth in the travel business, the business of VIP Industries will increase. IRCTC will also benefit from the increase in rail tickets. People will also go more to the amusement park etc. Companies like Mahindra Holidays and Wonderla will benefit from this and their stocks will go up.
Fashion and catering business will grow
The SBI Securities report said that due to the lifting of the restrictions of Kovid-19, businesses like fashion, food, apparel and jewelery will gain momentum in the coming days as people will now be able to move freely anywhere. The feeling of averting the threat of disease will also motivate people to leave their homes. This will increase the business. This will greatly benefit companies like Jubilant Foodworks, Sapphire Foods and TCNS Clothing.
Commercial rentals will gain momentum
The brokerage sees a recovery in the office market amid positive sentiments on accelerating vaccinations, resumption of business activities and continued strong hiring by corporates. Corporate activities are gaining momentum due to the decrease in the cases of Kovid-19. Companies have also intensified the recruitment of employees. SBI Securities says that this will lead to a boom in office rentals as the occupancy level is now approaching the pre-Covid level.
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SBI Securities is especially positive on NESCO Ltd. The brokerage firm says that there are early signs of recovery in the first nine months of FY 2022, which is likely to continue in FY 2023 as well. Apart from this, the company is planning to spend Rs 1,800 crore on developing more IT parks in the next five years. This will strengthen the shares of the company.
(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you wish to invest in any of these, please consult a Certified Investment Advisor first. Tech for FTCP is not responsible for any profit or loss caused by you. Will happen.)
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