Leela Palaces rises 5% as ICICI Securities initiates coverage with 'buy', sees up to 44% upside

Leela Palaces shares rise in December 16 trade. 

Leela Palaces Hotels & Resorts shares settled over 5 percent higher on Tuesday after ICICI Securities initiated coverage on the stock with a ‘buy’ rating, citing strong growth prospects and an upside potential of up to 44 percent.

The stock settled at Rs 416.45 apiece on the NSE, gaining 5.38 percent.

ICICI Securities has set a target price of Rs 600 per share. The brokerage said growth is expected to be driven by the company’s luxury positioning and its expanding portfolio.

According to the brokerage, Leela Palaces’ 25 percent stake in a luxury beachfront property at Palm Jumeirah in Dubai is expected to generate an annual management fee of up to Rs 600 million from FY28 onwards.

ICICI Securities forecast a revenue growth rate of 16 percent and an EBITDA growth rate of 17 percent over FY26-28, supported by higher average room rates, improved occupancy levels and a rising contribution from management fees.