Like Indian Hotels, Mahindra Holidays, Cox & Kings: Elara Cap

Harendra Kumar Of Elara Capital told CNBC-TV18, "On the consumption side, one should clearly look at the hotels stocks and the travel and tourism space. The occupancies and average room rates (ARR) are nudging upwards. This is the early beginning of the cycle. You will have a three year of sustained increase of ARRs and occupancies and the stocks from here could be potential doublers. We like Indian Hotels in that space and we also like Mahindra Holidays and Cox & Kings. I think the entire space will tend to do well from there on.""If you look at the data points now, the commercial absorption rate in the market is up 20 percent. Even select micro markets are showing tremendous growth. This is largely coming because of e-commerce players. So, both Bangalore and Hyderabad have firmed up. You have two very good real estate companies in Bangalore and potentially one could also look at Oberoi in Mumbai and Kolte Patil in Pune. Now, one would know that Pune has been selected for a smart city. They will see infusion of capital expenditure from the government and incremental spend," he said."So, this sector which is currently very underowned is seeing initial signs of turnaround. I am not saying go and buy leveraged companies, I am saying buy companies with good credentials, with good track records and with the new real estate bill coming up, there will be more certainty in terms of where the execution is going to move ahead. So, the sector is in for good times. Early days yet, but they are potential doublers over the next three years and one should start looking at them."