Indian Hotels’ Q4 revenue was in line, while EBITDA was below our estimates. Tata group hospitality firm reports consolidated net profit of 71 crore in the fourth quarter while revenue from operations during the quarter under review was 872 crores.
Brokerage house Motilal Oswal has maintained its FY23/FY24 EBITDA due to the ongoing demand recovery at Business Hotels. It has maintained its buy rating at multibagger stock with SoTP-based target pricing 278 per share.
“Like in FY 2012, we expect a strong recovery in FY 2013 and FY 24 by: a) improvement in ARR after economic activity normalizes; b) Better engagement led by the business travel as well as leisure segment; c) cost rationalization efforts; d) Increase in F&B earnings on resumption of banquets/conferences; and e) higher income from management contracts,” the note said.
Improvement in business travel along with higher demand in the leisure segment has driven the overall growth on a year-on-year basis. The company currently has 7,600 odd rooms under management, of which 1,100 rooms are under the Ginger brand.
Motilal Oswal said, “Asset-light model of Indian Hotels Company Limited as well as new/new revenue generating avenues, coupled with high EBITDA margin, augurs well for ROCE expansion.”
As per the recent BSE shareholding pattern, Indian ace investor and stock market trader Rakesh Jhunjhunwala holds 1.11% stake in the company, while his wife Rekha Jhunjhunwala holds 1.01% equity as of March 2022.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.