Kamat Hotels seems to be having full occupancy on the bourses. The stock yesterday was locked at its 20% UC at Rs.35.30 and today too it zoomed up to Rs.42, very close to its 20% UC at Rs.42.35.
Two reasons working in favor the company today.
Firstly, company specific – Merlin Marketing, a Kolkatta based company acquired 1.48% stake in the company at Rs.34.76/share.
Promoters currently hold 60.90% stake of which 92.42% is pledged.
Secondly, which is a more impactful reason, the Maharashtra Govt yesterday gave its nod, allowing hotels to start operating from today. These hotels have to be outside containment zones and they are allowed to resume operations at 33% of their capacity. This is a great relief for companies like Kamat as they can at least start expecting some footfalls as for the past few months, though fixed costs remained the same, there was negligible income, apart from home deliveries.
For the hotel industry, Q1 and Q2 will remain very tough and things could start looking up only if a cure or vaccine does emerge by Q3, which is its peak season.