Buy Samhi Hotels; target of Rs 313: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Samhi Hotels has recommended buy rating on the stock with a target price of Rs 313 in its research report dated May 31, 2025.

Broker Research

June 02, 2025 / 13:06 IST

Buy

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Prabhudas Lilladher's research report on Samhi Hotels

We increase our PAT estimates after accounting for minority interest by 20.6%/12.7% for FY26E/FY27E as we re-align our debt & interest forecast post fund infusion by GIC into a newly created JV platform for upscale hotel assets. SAMHI reported an in-line operating performance with EBITDA margin of 38.1% (PLe 36.9%) while PAT was impacted by an exceptional charge of Rs194mn; offset by a tax write back of Rs233mn. We expect top-line CAGR of 12.9% over the next 2 years led by addition of 245 keys with an EBITDA margin of 38.0%/39.1% in FY26E/FY27E. After fund infusion by GIC (Rs5,800mn received as of 27th May), net debt has fallen to Rs14,289mn. Consequently, we expect interest cost to fall from Rs2,288mn in FY25 to Rs1,500mn in FY27E resulting in 75.4% PAT CAGR over the next 2 years (after accounting for minority interest). Samhi trades at attractive valuation of 11x/9x our FY26E/FY27E EBITDA estimates and we expect re-rating to follow amid improvement in BS health and strong PAT growth.

Outlook

Retain BUY on the stock with a TP of Rs313 (14x FY27E EBITDA; no change in target multiple).

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