Buy Indian Hotels Co; target of Rs 189: Motilal Oswal

Motilal Oswal's research report on Indian Hotels Co

IHIN's consol. revenue grew 11% YoY to INR13.2b (our estimate: INR13.1b) in 3QFY19. EBITDA increased 20% YoY to INR3,355m (our estimate: INR3,402m), with the margin expanding 190bp YoY to 25.4% (our estimate: 26.0%). Adj. PAT rose 36% YoY to INR1,208m (our estimate: INR1,393m). For 9MFY19, consol. revenue grew 10.5% YoY to INR32.7b, with margin expansion of 230bp YoY to 16.7% (EBITDA up 28.1% YoY to INR5,454m).

Outlook

On an SOTP (consol. and JV & associate) basis, we arrive at a TP of INR189, implying an upside of 39%. Maintain Buy.