Backed by a strong recovery in the leisure segment, Indian HotelAccording to brokerage house Anand Rathi, the results of the second quarter came well ahead of the market estimates. The company’s management has said that recovery is on in October and expects the second half of FY12 to be better.
With its dominance in the Indian hotel sector, excellent brand equity and a well-diversified portfolio across business segments and price-points, the brokerage firm believes that Indian hotels are well positioned to capitalize on the recovery in the economy. are ready.
“The focus on growing high-margin new age businesses is a significant positive. This, along with cost savings and operating leverage, will enhance profitability and returns in FY 2012-24,” it said in a note.
Anand Rathi has maintained its ‘Buy’ rating on the stock on strong performance across all parameters in Q2 with revised sum-part target price. ₹237 per share (earlier .) ₹175). However, a major risk could be a slowdown in the economy which would reduce demand.
Tata Group’s hospitality firm Indian Hotels reported narrowing its consolidated net loss ₹130.9 crore in the second quarter ended 30 September. Its consolidated sales (now over 70% of pre-Covid times) have been fueled by growth in leisure travel, improvement in business travel, weddings and corporate events.
The company is planning to raise funds through rights issue and QIP. This and internal cash flow will be used to pay off debt, consolidation (business-model simplification) and drive expansion/renewal, added Anand Rathi’s note.
As per BSE shareholding pattern of Indian Hotels, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala holds 1,25,00,000 shares or 1.05% stake in the company. Together, they hold a 2.10% stake as of September 2021.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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