Buy Indian Hotels; target of Rs 97: KRChoksey

17345 Investors following Indian Hotels. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Indian Hotels; target of Rs 97: KRChoksey

KRChoksey is bullish on Indian Hotels and has recommended buy rating on the stock with a target of Rs 97 in its August 3, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Networth Stock Broking neutral on Gujarat Pipavav Buy Birla Corporation; target Rs 408: Motilal Oswal Buy DLF; target of Rs 315: PINC Research ALSO READ See previous views by KRChoksey See what other Experts & Brokerages are saying about Indian Hotels See messages about Indian Hotels Indian Hotels BSE | NSE 31/05/12 Are Mutual Funds betting on Indian Hotels?

KRChoksey is bullish on Indian Hotels and has recommended buy rating on the stock with a target of Rs 97 in its August 3, 2011 research report.

"Indian Hotels Company Ltd (IHCL) is the largest hotel operator in South Asia with an inventory of 12,200 rooms (103 hotels) across India and international markets (USA, Australia, Maldives, Malaysia, UK, Sri Lanka). IHCL has presence across luxury, premium, mid-market and value segments of the market via its various brands i.e. Taj, Vivanta, Gateway and Ginger."

"Indian Hotels posted its Q4FY11 results above the street estimates recording a topline growth of 21% y-o-y at Rs 546.3 Crs v/s Rs 451.8 Crs in Q4FY10; the bottomline grew 56.7% y-o-y to Rs 93.9 Crs v/s Rs 59.9 Crs in Q4FY10. The growth was majorly driven by improved occupancies and growth in ARRs across its key markets and customer segment. For FY11 standalone total income for the company stood at Rs 1673 Crs (~14% growth y-o-y) whilst the bottomline growth y-o-y was flat with a negative bias at Rs 141 Crs. FY10 results are not strictly comparable as a one off of Rs 64 Crs was accrued towards the loss of profit insurance cover for Taj Mahal Hotel. For FY11 consolidated turnover was Rs 2892 Crs (~ 15% Growth y-o-y) enabled by improved sales on both domestic & international fronts. The consolidated Loss after Tax stood at Rs 87 Crs (36% decline y-o-y), which is a result of the company's initiatives to reduce debt leading to significant reduction in Interest Costs."

"On an asset value basis, the stock is trading at an EV/Room of Rs 8 Mn, even below its replacement cost levels. In terms of EV/EBITDA, currently the company is trading at a multiple of 10.5x FY13E. Considering its 10 Year average range of 12-14x EV/EBITDA, we have valued Indian Hotels at a conservative 10x FY13E EV/EBITDA to arrive at a price target of Rs 97 per share, a 25% potential upside from the current levels," says KRChoksey research report.

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment