Equity Research Project on Hotel Sector

Abstract

Currently, we are living in the global pandemic. Due to the covid-19, many countries in the world are into the lockdown currently. Even India is having the nationwide lockdown for 70 days and also there is still a lockdown in many states. In this global pandemic, all the major businesses around the world are facing the problems. The one of the sectors that is the worst hit due to this coronavirus pandemic is the hotel sector. With the nationwide lockdowns, the majority of all the hotels in the world lost businesses and also after the lockdown due to the behavioural change the hotel sector cannot foreseen the same level of operation and revenue for at least two years. This research is used to understand the hotel sector using the top down approach. First analyze the global scenario in the hotel sector then analyze the Indian hotel sector. This helps to understand where the Indian sector is compared to the global hotel sector and what are the growth opportunities that are still untapped in the Indian hotel sector. After the analysis of the global hotel sector and Indian hotel sector, I analyzed the company in the Indian hotel sector: Indian Tourism and development corporation (ITDC). After that the analysis of the company is done using the annual reports, financial statements and ratio analysis. The covid-19 dashboard is created to understand the impact of covid-19 in this company. The forecasting is done using the past data and analysis information. Then the peer comparison of this company is done to understand where the company stands compared to its peers. After the entire analysis, I can conclude that even though it is not a great time to invest into the hotel sector, this company can surely give some returns.