Indian Hotel Company Stock Price: Shares of Indian Hotels Company Ltd were trading 2.21 per cent higher at Rs 346.45 in early trade on Tuesday, amid this pick up in hotel demand driven by the pandemic and a strong outlook for the industry following more domestic travel. The stock had closed at Rs 338.95 in the previous session.
IHCL on Thursday reported 343 per cent jump in profit at Rs 328.27 crore for the March 2023 quarter. This is as against a net profit of Rs 74.2 crore in the corresponding quarter of the previous financial year. Revenue from operations grew 86.4 per cent to Rs 1,625.4 crore as compared to Rs 872.1 crore in a year-ago period.
“IHCL achieved a record inception year with several significant achievements, including highest ever full year consolidated revenue, highest ever and industry leading EBITDA margin and PAT of over INR 1,000 crore, a historic first for the company Is. This performance was enabled by four consecutive quarters of sustained high demand, further bolstered by IHCL demonstrating RevPAR leadership across its brandscape across all its key markets,” said Puneet Chatwal, Managing Director and CEO, IHCL.
With the record signing of 36 hotels in FY2023, the IHCL portfolio now stands at 260+ hotels. It has opened 16 new hotels in the current financial year. This includes four hotels each under the Taj and Selection brands, three from Vivanta and five under the Ginger brand. It has also been able to achieve an optimum 50:50 mix between our owned/leased and managed hotels.
“The iconic brand Taj has grown to a portfolio of 100 hotels and has more than doubled its room inventory in the last five years,” IHCL said in its regulatory filing.
Ginger Hotels reports turnaround in FY 2022-23 Led by 50% lean luxury portfolio, the company achieved revenue of Rs 307 crore, EBITDA margin of 37.4 per cent and profit before tax of Rs 48 crore.
“IHCL’s performance reflects the affection and loyalty of our guests, the continued guidance and support from our Board and the remarkable passion and commitment of the 28,000-strong IHCL team. Management focus remains on value creation for all stakeholders, providing customers with a unique hospitality ecosystem across sectors, paving the way for inclusion of local communities in our value chain, pioneering new destinations in the country and continues to deliver superior performance.”
The Board has recommended a dividend of Re 1 per equity share of Re 1 each fully paid share, subject to approval by the members at the ensuing Annual General Meeting.
In the last one year so far, the stock has gained 35.2 per cent, while the 30-share index has gained 7.72 per cent during the same period.
The 52 week high price of the stock was Rs 350.65 and the 52 week low was Rs 207.25.
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Jefferies maintained a buy rating on Indian Hotels with a target price of Rs 405. The global investment bank sees an incremental demand driver for FY24.
“Average room rates (ARRS) are settling at higher levels which is a positive sign. Diversifying topline + asset light growth are key focus areas for the company going forward,” said the note.
Motilal Oswal maintained buy rating on Indian Hotels with a target price of Rs 420 after the March quarter results.
Factoring in 4QFY23 performance, we raise our FY24/FY25 EBITDA estimates by 5% / 3%, aided by better-than-expected ARR, addition of new owned/leased and management hotels and normalization of inbound travel .
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