Buy Indian Hotels; target of Rs 924: ICICI Securities

ICICI Securities is bullish on Indian Hotels has recommended buy rating on the stock with a target price of Rs 924 in its research report dated February 08, 2025.

Broker Research

February 10, 2025 / 21:31 IST

BUY

ICICI Securities's research report on Indian Hotels

We recently hosted Indian Hotels’ (IHCL) management for meetings with investors in Singapore. IHCL reiterated its ‘Accelerate 2030’ strategy – doubling operational + pipeline hotels to 700+ over FY24–30; thus, doubling its consol. revenue at a 14% CAGR over the same period. IHCL’s focus remains on boosting capex; it seeks to utilise 20–25% of its annual EBITDA towards renovation, ongoing new builds and digital capex along with commencing construction of the long-awaited Sea Rock Hotel (Bandstand) in CY25.

Outlook

We upgrade IHCL to BUY, from Hold; SoTP-based TP revised to INR 924 (vs. INR 846), raising FY26E/FY27E EBITDA by 2%/6% with a Mar’27E EV/EBITDA multiple of 33x (vs. 32x), considering IHCL’s ability to outpace the sector. Key risks: Fall in occupancy and slower discretionary consumption.

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