Harsha Engineers makes a bumper listing with 36% premium

Harsha Engineers International clocked gains on listing as expected before rising further but most analysts advise booking profits amid market turmoil. The stock started off the first day's trade with a whopping 36 percent premium over issue price despite nervousness in equity markets. It climbed further six percent as the day progressed to take total gains to 43 percent over issue price.

Analysts said high premium at listing is justified with the IPO generating stronger than expected demand as qualified institutional investors' portion got subscribed over 178 times. Also, the ask price is fairly valued compared to industry peers.

"We recommend booking partial profits while remaining can be kept for the long term as the company is a comprehensive solution provider offering diversified suite of precision engineering products across geographies and end-user industries and has long-standing relationships with leading clientele," said Astha Jain, senior research analyst at Hem Securities.

Rajnath Yadav, research analyst at Choice Broking, urged investors to exit given the market volatility. Although Prashanth Tapse, senior vice president of research at Mehta Equities, sounded "very optimistic" on Harsha Engineers with its dominant position, he too advised booking profits in the current market scenario. "Risk takers can hold with a long-term perspective," he added.

Santosh Meena, head of research at Swastika Investmart, termed the company as a proxy play on India becoming a global manufacturing hub: "Those who applied for listing gains can maintain a stop loss at Rs 400. Our recommendation for investors is to hold the allotted shares and long-term investors can accumulate the stock on dips."

Harsha Engineers, which is the largest manufacturer of precision bearing cages in India, raised Rs 755 crore from the public issue with a strong 74.70 times subscription during September 14-16. Of the total issue size, Rs 455 crore was raised through fresh issuance which will be used in repayment of debts, capital expenditure towards the purchase of machinery, and existing production facilities.

Sensex was down 860.62 points or 1.48 percent at 57,238.30, and the Nifty down 285.50 points or 1.65 percent at 17041.80 following weak global cues. This is the fourth straight day of selling on Dalal Street.

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Buy Indian Hotels Company; target of Rs 380: Sharekhan

 Strong industry tailwinds, scale-up in new ventures and lean balance sheet makes it a strong play in the hospitality space. Sustained high domestic leisure travel demand and a likely pick-up in foreign tourist arrivals (FTAs) will drive up room demand and occupancies in the near term. Occupancy ratio would stay close to Q1 levels in Q2 as well despite being a lean season. Average domestic room rentals will stay high as room demand would exceed room supply in the medium term. IHCL plans to open 18 hotels every year to drive demand; large expansion will happen through management contracts.
We retain our Buy recommendation on Indian Hotels Company (IHCL) with revised price target of Rs. 380 (rolling it over to September 2024 EV/EVBIDTA).
At 17:30 Indian Hotels Company was quoting at Rs 326.75, down Rs 7.00, or 2.10 percent.
It has touched an intraday high of Rs 336.20 and an intraday low of Rs 323.55.
It was trading with volumes of 263,440 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed up 2.39 percent or Rs 7.80 at Rs 333.75.
The share touched its 52-week high Rs 337.30 and 52-week low Rs 169.32 on 16 September, 2022 and 24 September, 2021, respectively.
Currently, it is trading 2.86 percent below its 52-week high and 93.51 percent above its 52-week low.
Market capitalisation stands at Rs 46,411.56 crore.

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Shruti Shibulal's Tamara Leisure expects 3-fold growth this fiscal

 Hospitality firm Tamara Leisure Experiences expects its business to grow three-fold in the current fiscal, compared to pre-pandemic levels, amid easing of travel restrictions, according to the company CEO Shruti Shibhulal.
The company is looking at inorganic expansion through acquisitions across its affordable, midsegment and leisure businesses across India as well as overseas through internal accruals, Shibulal told PTI.
"Due to COVID there was instability... This year we are expecting to hit about three times the number that we hit in 2019-20. Take the cut-off as March," she said on the sidelines of Entrepreneur Annual Conclave. Tamara Leisure operates in three segments -- luxury resorts, business hotels and midsegment.
Daughter of Infosys co-founder and former CEO SD Shibulal said that the last couple of years were very unstable. The company's business hotels were running in losses but with the easing of travel restrictions, the revenue has boomed again. "... We are seeing a very different behaviour from the last few years. I would say between 2019 and 2023 we have grown about 10 times," Shibulal said.
Besides organic expansion, the company is looking to expand business both within the country and overseas through acquisitions. "We are looking at Lilac Hotels, which is our midsegment hotel, there we look at a minimum of 50 keys. For O By Tamara, we look at a minimum of 100 keys.

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