on BSE, Indian Hotel touched a new all-time high of 311.45 each. The shares remained bullish throughout the day and gained at least 5%. During closing hours, Indian Hotels closes at record highs by 310.05 up 13.55 or 4.57%.
of the company Market hat is around 44,039.49 crore.
Year-over-year, shares of Indian Hotels have risen more than 127 or about 69% on Dalal Street. Shares have registered triple digit growth in one year with a gain of 118.73 per cent. shares were around 142.46 on 3rd September last year.
Moreover, shares of Indian Hotels have made a strong recovery from the bearish tone due to the pandemic, which has resulted in the nationwide lockdown in 2020. The shares have gained over 215% or 3.15 times in 2 years. it was around 98.7 on September 4, 2020.
Indian Hotels is one of the top 10 most valuable stocks in the portfolio of late market mogul Rakesh Jhunjhunwala. However, Rakesh who was often referred to as the ‘Warren Buffett of India’ passed away on 14 August due to a health condition. His property including shares and property is transferred to his family.
As on June 30, 2022, Rakesh held 1,57,29,200 equity shares or 1.11%, while Rekha Jhunjhunwala held 1,42,87,765 equity shares or 1.01%. Together, the couple holds 30,016,965 equity shares or 2.1% of the company.
In Q1FY23, IHCL made a net profit of 170.05 crore on consolidated basis as compared to 277.34 crore in Q1FY22. Q1 PAT also rose by 129.21% 74.19 crore in Q4FY22. Consolidated revenue grew by a whopping 267.46% 1,266.07 crore in Q1FY23 as against 344.55 crore in the first quarter of the previous year and an increase of 45.18% 872.08 crore in Q4FY22.
Should you invest in Indian Hotels shares?
In their Q1FY23 review report for the hotel sector, research analysts Sumant Kumar and Meet Jain of Motilal Oswal highlighted that the company’s ORR in 1QFY23 exceeded pre-pandemic levels in almost all hotels, except Ginger where ORR decreased due to its strategy of increasing room rent. , while a focus on cost optimization reduced fixed costs as a percentage of sales by 35% in 1QFY23 from 46% in 1QFY20.
Further, he explained that palaces and safaris are yet to see a pre-Covid level of traction, as foreign inward travel has not picked up; It is expected to pick up pace by the end of CY23. Expectations of Indian Hotels 1 billion+ enterprise revenue from Qmin over the next two to three years. The company guided the opening of 14 more hotels and signing 15 more hotels in the remaining 23 of FY23.
In addition, Motilal analysts noted that Indian hotels have 8,100 rooms in the pipeline, representing 25%/40% of the total portfolio/operational portfolio. Its long-term guidance of 33% EBITDA margin with 35% margin from new business and its desire to build a Qmin restaurant in every Ginger Hotel.
Indian hotel management expects 55%+ EBITDA margin in Ginger Plus Cummins and other portfolio to reach 40-45% margin.
Maintain BUY on IH with FY24-based target price 320,” Motilal analysts added to the report.
Meanwhile, analysts at Ventura Securities said in their report, “We begin coverage on IHCL with a buy for a price target. 384 per share (FY25 PE of 46X), meaning 37% above CMP 280 in the next 24 months.”
Analysts at Ventura said, “Over the period FY 22-25E, we expect IHCL’s Revenue / EBITDA to grow at a CAGR of 27.1% / 67.2% (low base effect). 6,281.9 crore/ 1,890.9 crore respectively. Net profit scale is expected to be 1,195.8 crore (as compared to a loss of Rs. 265.4 crores), while EBITDA and net margin are expected to improve by 1690bps (up to 30.1%) and 2410bps (up to 19.0%) respectively. The return ratio – RoE and ROIC – is set to improve by 1580 bps (12.0%) and 1950 bps (19.5%) respectively.”
Indian Hotels is one of the leading Indian hospitality companies and has a diverse business portfolio in hotels, resorts, jungle safaris, palaces, spas and in-flight catering services.
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