Rakesh Jhunjhunwala Portfolio The hospitality industry has been battling the heat of the Covid-19 pandemic for the past two years, but Indian Hotels stock has given multibagger returns in the past one year. In the past one year, it has risen up to 125 per cent, while in 2022, this stock of Rakesh Jhunjhunwala has risen to 35 per cent. However, ICICI Securities sees more upside in this multibagger stock. As per the Indian Hotels Company Limited’s Q4FY22 results following ICICI Securities’ research report, the brokerage has revised the Indian Hotels share price target to Rs. 292 levels.
Throwing light on the reason for raising its target Rakesh Jhunjhunwala Portfolio Stocks, ICICI Securities report says, “We increase our FY23/24E revenue estimates by 6/2% and EBITDA estimates by 3/4%, respectively, stronger than expected in H1FY23E (after Apr’22) Demand is improving. -Covid levels with FY23E consolidated revenue expected to grow 56% YoY to 47.8bn or 107% over FY20 levels. We expect FY24E revenue to grow 18% YoY to 56.5bn FY19 and ARRs rising 7% from FY20 (pre-Covid levels) with occupancy assumption at 72% vs 68% and contribution from new businesses driving revenue growth, reducing fixed costs and staff-to-room ratio The EBITDA margin is expected to improve to 28% as a result of the Company’s efforts in FY23E and FY24E versus 32% in FY20.
Anticipating recovery in FY23 in the post-pandemic phase, the brokerage says, “We believe IHCL is poised to benefit from the expected improvement in hotel business cycle from H1FY23 (April ’22) and the company Brand equity to focus on new business segment, focus on cost optimization, asset-light management contract model to expand room portfolio and net after raising equity fund through rights and QIP issue in H2FY22 Cash balance sheet. The major risk to our ratings is the fresh Covid wave globally and in India which is impacting demand and cost escalation has reduced margins.”
On its suggestion for Indian Hotels shares, ICICI Securities says, “While Q4FY22 was an Omicron-affected quarter, leading to a 22% QoQ decline in IHCL’s consolidated revenues, we will revise our BUY rating to SOTP-based target price of 292/share.” Let’s reiterate with (earlier). Rs 285, Valuation of the stock at 22x Mar’24E EV/EBITDA.”
Shareholding in Rakesh Jhunjhunwala Indian Hotels Company
It is invested by Big Bull and his wife Rekha Jhunjhunwala.
As per the shareholding pattern of IHCL for Tata Group Hotels Q4FY22, Rakesh Jhunjhunwala holds 1,57,29,200 IHCL shares or 1.11 per cent stake in the company, while his wife Rekha Jhunjhunwala holds 1,42,87,765 IHCL shares or 1.01 per cent in the company. percentage share.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.