Add Indian Hotels Company, target price Rs 443: ICICI Securities

ICICI Securities has add call on Indian Hotels Company with a target price of Rs 443. The current market price of Indian Hotels Company is Rs 387.

Indian Hotels Company, incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 55054.72 Crore) operating in Tourism & Hospitality sector.

Indian Hotels Company key Products/Revenue Segments include Income from Rooms, Restaurants & Other Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1654.54 Crore, down -5.10 % from last quarter Total Income of Rs 1743.51 Crore and up 73.27 % from last year same quarter Total Income of Rs 954.88 Crore. Company has reported net profit after tax of Rs 302.00 Crore in latest quarter.

The company’s top management includes Mr.N Chandrasekaran, Mr.Puneet Chhatwal, Mr.Venu Srinivasan, Mr.Mehernosh Kapadia, Ms.Anupam Narayan, Mr.Nasser Munjee, Ms.Hema Ravichandar, Mr.Venkataramanan Anantharaman. Company has B S R & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 142 Crore shares outstanding.

Investment Rationale
The brokerage currently builds in LTL RevPAR growth of 10% in FY24E and 6% in FY25E and FY26Eand similar increase in domestic subsidiaries (Ginger/PIEM/Benares/United hotels)and along with new room additions, ICICI Securities estimate 10% revenue CAGR and 15%EBITDA CAGR over FY23-26E.
The brokerage rolls forward its valuation to 23x Jun’25EV/EBITDA (earlier Mar’25) and retain its ADD rating with a revised SoTP-based target price of Rs443/share (earlier Rs399). Key risks are fresh Covid waves and discretionary consumption slowdown.

Promoter/FII Holdings
Promoters held 38.19 per cent stake in the company as of 31-Mar-2023, while FIIs owned 18.24 per cent, DIIs 27.28 per cent.