STOCKS TO WATCH Sales boom but will Tesco stock simmer in 2021?

EXPECT plenty for Tesco shareholders to chew over in this week’s trading update after a baptism of fire for boss Ken Murphy, who had to contend with last-minute Covid restrictions during his first Christmas in charge.

The good news is that

Britain’s biggest retailer will likely report stonking sales – thanks in part to the shutdown of restaurants driving shoppers to supermarkets.

However, the lack of festive get-togethers and the latest lockdown is hurting Tesco’s Booker division, which supplies caterers. Any indications of annual profits will be examined after Tesco agreed last month to repay £585million in business rates relief to the Government.

Analysts at Barclays argue that, after an underwhelming year for the shares, Tesco has brighter prospects in 2021 with sales trends likely to improve and Brexit uncertainty lifted.

Can Murphy make this the year Tesco’s stock finally begins to simmer?

MARSHALL MOTOR chief Daksh Gupta is in an alarmingly chipper mood. The AIM-listed car seller, which runs 113 franchised dealerships, has had to shut showrooms in the lockdown. But Gupta says trade is surprisingly strong for servicing, repairs and click and collect sales.

And the acquisition addict is ready to expand. Since taking charge in 2008 Gupta has struck 167 deals – buying and selling small chains and large groups of forecourts.

With £30million of cash on its balance sheet, the firm looks well-oiled amid troubled peers. Gupta says: ‘Businesses that went into this weak are in the weakest position. We’re well positioned as an acquisitive business and keen to strengthen, particularly in the South-East.’