What should investors do with auto stocks? Sandip Sabharwal answers
«The management strategy of expanding across various formats, expanding its food delivery, TajSATS. So, I think strategically they are doing very well and now the big focus only on managed hotels is working well for them. Stock is not cheap at these valuations at all. Like, we obviously hold for from very low levels and we continue to hold,» says Sandip Sabharwal, asksandipsabharwal.com.
Two stocks you track closely, both InterGlobe as well as Indian Hotels giving fresh solid moves today. Do you think the prospects continue to look brighter and what if one were to look to add positions at these levels? Would you recommend that at all?
Sandip Sabharwal: InterGlobe is in a very unique position where the competitive intensity instead of increasing on improved profitability in the sector actually reduced.
SpiceJet has its own issues which has led to reduced services and airlines like InterGlobe which is only listed player available and on the cusp of the peak holiday season.
So, I think Vistara, Air India, etc, they will be able to have significant pricing power. And additionally, the input cost pressures have eased off so significantly. So, I think that is also boosting the stocks in the short run. So, there is nothing wrong with InterGlobe. Absolutely, I think strategically also it is very well placed. Long term, it should do well. Indian Hotels has been doing well.
The management strategy of expanding across various formats, expanding its food delivery, TajSATS. So, I think strategically they are doing very well
