Stock market analyst Hitendra Vasudeo of stockmechanics.com has maintained ‘buy’ rating on Hotel Leela Venture stock with an intraday target of 35.

According to Mr. Vasudeo, interested traders can purchase the stock above Rs 33 with a strict stop loss of Rs 32. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 36.
 
Shares of the company, on Thursday (Aug 21), closed at Rs 30.75 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 145163. Current EPS & P/E ratio stood at 4.18 and 7.81 respectively. The share price has seen a 52-week high of Rs 76.85 and a low of Rs 28.90 on BSE.

The stock has good potential and it can still exhibit superb surge. It will achieve the target price as the company has healthy expansion plans and strong operating capabilities.

Hotel Leela Venture announced a steady increase in standalone net profit for the three months period ended June 2008. During the same period, the company’s net profit arose 10.84% to Rs 334.30 million.

The company posted EPS Rs 0.88 (per share), recording 8.64% growth over prior year period.

Net sales during the same period surged 23.84% to Rs 1,240.60 million, whereas total income for the quarter rose 23.49% to Rs 1,277.80 million.

The interest cost declined 0.65% to Rs 76.10 million during the quarter, whilst depreciation cost climbed 28.36% to Rs 111.80 million.

Recently, Hotel Leela Palace has signed up sales and marketing deal with US-based Preferred Hotel Group.

The company entered into this contract with the intention to swell its brand awareness, reservations and yield through the American firm’s 29 global sales offices.

The hotel plans to increase its room tariffs by 10 per cent from October. The increase in tariffs is driven by rising food costs and in general, by the present inflationary trend in the global economy.

Hotel Leelaventure will invest $500 mn for development of luxury properties in upcoming markets over the next three-year period, a top company executive said.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes EIH, Indian Hotels and Asian Hotels.