These top performing hotel and restaurant sector stocks gained up to 136 per cent on YTD basis!

The million-dollar question is whether the momentum in these stocks would continue or not?

Festival bells are ringing and people are seen to be in a festive mood. However, the fanfare and unparalleled extravaganza is missing, which used to be the hallmark of the season before the pandemic struck the country. Restaurant and the hotel sector suffered heavily due to the restrictions imposed on the outing & dining activities but with the gradual upliftment of these bans along with mass vaccinations and the decrease in the number of COVID-19 cases, these two sectors are getting a ray of hope! Furthermore, what was hearting to see is the fact that Mumbai, the city that was once the epic centre of COVID-19, reported zero deaths for the first time since the pandemic began to spread.      

This news is certainly instilling confidence among the people to celebrate this festive season with no fear. The testimony of this is the fact that one of the leading newspapers of India reported this Durga Puja that people took to revenge eating and this heavy rush in the restaurants forced many restaurants to shut down their shutters as they ran out of food. If this is not enough, you must have noticed the pictures of airports and many malls doing rounds on social media platforms, which certainly highlights the fact that people want to break the shackles after nearly one and half year of caution & restraint.   

Due to the above scenario, hotel resorts and the restaurants sector incurred heavy losses.  

Let us check the performance of these stocks on a YTD basis. In our list, there are about 24 stocks and interestingly, out of these, almost 22 have delivered positive returns on a YTD basis.   

The top three performers on a YTD basis from this sector are Hotel Rugby, TGB Banquets & Hotels and Indian Hotels. Hotel Rugby jumped 136 per cent while TGB Banquets & Hotels rose by 111 per cent, followed by Indian Hotels, which gained 92 per cent.   

Here is the complete list: 

However, the million-dollar question is whether the momentum in these stocks would continue or not? We feel that as long as the third wave of COVID-19 is kept on bay, these stocks would continue to garner attention.