Looking to unlock trade on D-Street? Analysts suggest these 7 stocks

• Follow

The Covid-19 outbreak has hit several industries, especially tourism and hospitality sector, as the pandemic spoiled travel plans weekend outings. However, following a consistent decline in the number of cases and as the vaccination drive gains momentum, the world expects to get back to normal life soon.

People are eagerly awaiting opportunities to move out of their houses to attend parties or go for a movie. As the economy reopens with the easing of lockdowns and restrictions, it will again be all about ‘Entertainment, Entertainment, and Entertainment’.

William O’Neil India suggested seven stocks that may benefit from the unlocking of the economy. Have a look:

Burger King: The company is the fastest-growing quick-service restaurant (QSR) chain in India. It offers a variety of fast-food burgers, fries and beverages. It operates in 270 restaurants including sub-franchisees across India as of December 2020. Globally, it is the second-largest fast-food burger chain. Burger King expects for FY22 same-store sales growth to remain as FY20 and from FY23 grow at 5%-7%.

Westlife Development: The company also operates quick-service restaurants. It gives preference in establishing and operating McDonald’s restaurants across western and southern India, through its wholly-owned subsidiary Hardcastle Restaurants Pvt. Ltd. (HRPL).

PVR: PVR Cinemas is the market leader in terms of screen count in India. It redefined cinema viewing in the country and the way viewers watch movies. The company has grown both organically and inorganically over the years. Some of its key strategic investments and acquisitions are Cinemax Cinemas (added 138 screens to PVR network) in November 2012, DT Cinemas (32 screens) in May 2016, and SPI Cinemas (76 screens) in August 2018. As of Q3 FY21 end, PVR operates 845 screens in 176 cinemas in 71 cities in India and Sri Lanka, with approximately 1.82 lakh seating capacity.

Inox Leisure: The company is one of the largest multiplex chains in India with a diverse distribution of screens countrywide. At the end of Q4 FY21, it had 648 screens across 69 cities. Inox focuses on regional content more than its peers, most of which rely heavily on English and Hindi movie content. After FY22, the company plans to open another 958 screens, taking the count to 1,650 screens countrywide.

Jubilant FoodWorks: The company is one of India’s largest food service companies. It owns master franchise rights of three major international brands: Domino’s Pizza, Dunkin’ Donuts, and Popeye’s. Jubilant is a market leader in the pizza segment. With the launch of “Ekdum!”, Jubilant also entered India’s favoured Biryani segment.

United Spirits: The company is the world’s second-largest spirits maker in terms of volume sales. It is a subsidiary of Diageo. Its major brands are Mc Dowell’s No 1, Black Dog, Johnnie Walker, Antiquity, Signature, Royal Challenge, Smirnoff, and Vat 69. United Spirits’ strengths include its scale and geographical diversity. The company believes in the long-term story even if the short term is full of uncertainty. It has various reasons to be optimistic. In India, around 17 million people are expected to be added to the legal drinking age (LDA) category over the next three to five years.

Radico Khaitan: Radico Khaitan, formerly known as Rampur Distillery, commenced operations in 1943. It is a major supplier of bulk spirits and is well known countrywide. It started its portfolio with 8PM Whisky along with Magic Moments, Contessa XXX Rum, and Old Admiral Brandy. Net debt has been declining for the last six years.