Buy Indian Hotels Company; target of Rs 492: Sharekhan

Sharekhan is bullish on Indian Hotels Company has recommended buy rating on the stock with a target price of Rs 492 in its research report dated October 27, 2023.

Broker Research

October 30, 2023 / 21:23 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on Indian Hotels Company

IHCL’s Q2FY2024 performance was in-line with our expectations, with revenues and PAT growing by 16% and 48% y-o-y, respectively; EBIDTA margins rose by 90 bps y-o-y to 24.8%. Standalone RevPar grew by 28% y-o-y. Management is confident of strong growth momentum to continue in H2FY2024 driven by ongoing events and festive and wedding season. Company has cash of close to Rs. 1,400 crore. It has efficient capital allocation plans of investing in renovation/upgradation of existing hotels, greenfield projects through operating lease and simplifying the structure by increasing stakes in JVs/associates for better management.

Outlook

Stock has corrected by 14% since its recent high and provides good opportunity to enter to generate good returns considering strong growth prospects over medium terms. We maintain Buy with PT of Rs. 492.

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