Buy Indian Hotels Company; target of Rs 450: Sharekhan

Sharekhan is bullish on Indian Hotels Company has recommended buy rating on the stock with a target price of Rs 450 in its research report dated July 27, 2023.

Broker Research

July 31, 2023 / 15:27 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Indian Hotels Company

Q1FY2024 was a mixed bag for Indian Hotels Company (IHCL), with consolidated revenues growing by 16% y-o-y to Rs. 1,466.4 crore while EBIDTA margins decreased by 187 bps y-o-y to 28%; PAT grew by 20.2% y-o-y to Rs. 210.6 crore driven by higher other income and lower interest costs. Domestic growth momentum would sustain as room demand exceeds supply in FY2024. G-20 summit, Cricket World Cup in October and a recovery in foreign tourist arrivals will drive strong room demand and ARR growth in H2FY2024. IHCL maintained guidance of achieving nearly a 33% EBIDTA by FY2025. Asset light model to help in high free-cash generation. Diversification of business is scaling up well and contributes 15% of revenues.

Outlook

Stock trades at 21x/18x its FY2024E/25E EV/EBIDTA. We maintain our Buy recommendation on the stock with revised PT of Rs. 450.

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