Buy East India Hotels; target of Rs 150: ICICI Direct
ICICI Direct is bullish on East India Hotels has recommended buy rating on the stock with a target price of Rs 150 in its research report dated April 13, 2017.
ICICI Direct's report on East India Hotels
East India Hotels (EIH), one of the premium hotel operators, is expected to be a key beneficiary of a revival in the economic environment. We believe that a slowing down of capacity addition coupled with a rise in spending by domestic travellers will drive occupancy levels over the next few years. Also, with improved tourism measures by the government, the sector may see a better growth trajectory and pricing in the next three to four years.
The stock is trading at attractive valuation of (i.e. at EV of Rs 3.2 crore/room, 15.0x FY19E EV/EBITDA). Hence, we upgrade the stock to BUY with a revised target price of Rs 150 (i.e. valuing at EV/EBITDA of 17.0x and EV of Rs 3.9 crore/room).
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