Moneycontrol PRO
Upcoming Event:Attend Quants League - 5 Days Live Algorithmic Options Trading Virtual Conference @ just Rs. 600/- brought to you by Moneycontrol Pro. Register Now!
you are here: HomeNewsBusiness

Buy Indian Hotels; target of Rs 150: ICICI Direct

ICICI Direct is bullish on Indian Hotels has recommended buy rating on the stock with a target price of Rs 150 in its research report dated May 04, 2021.

May 25, 2021 / 05:07 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Indian Hotels


IHCL’s Q4FY21 performance broadly remained ahead of our estimates led by a better performance from leisure segment and prudent cost management leading to positive EBITDA for the quarter. Consolidated revenue improved ~10% QoQ to Rs 615 crore (vs. I-direct estimate: Rs 542.1 crore) while it was down 42.1% YoY. Domestic occupancy improved to 72% vs. 52% last quarter due to traction in the leisure segment. Revenue per room (RevPAR) was up 29.3% QoQ to Rs 3329/room. Domestic leisure destination led the recovery with destinations like Goa, Rajasthan reporting healthy occupancy in Q4FY21. Business destinations continue to stay affected with Mumbai, Delhi and Bengaluru reporting average occupancy of ~35-38%. Total operating expenditure declined 36.4% YoY to Rs 543.7 crore. As a result, IHCL managed to report EBITDA of Rs 71.3 crore (vs. I-direct estimate: EBITDA loss of Rs 31.1 crore). Consolidated net loss came in at Rs 91.3 crore (vs. net loss of Rs 118.9 crore in Q3). The company signed 17 hotels in the current fiscal, adding over 2,200 rooms to its portfolio.


Outlook


We continue to maintain BUY rating with an unchanged target price of Rs 150 (i.e. 22xFY23E EV/EBITDA).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

Broker Research
first published: May 25, 2021 05:07 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark