Buy Chalet Hotels, target price Rs 960: JM Financial

JM Financial has a buy call on Chalet Hotels with a target price of Rs 960. The current market price of Chalet Hotels Ltd. is Rs 803.1 Chalet Hotels, incorporated in 1986, is a Mid Cap company with a market cap of Rs 17432.72 crore, operating in the Tourism & Hospitality sector.

Chalet Hotels' key products/revenue segments include Income from Rooms, Restaurants & Other Services, Lease Rentals and Other Services for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 464.46 crore, up 21.21% from last quarter Total Income of Rs 383.18 crore and up 22.26% from last year same quarter Total Income of Rs 379.89 crore. The company has reported net profit after tax of Rs 96.52 crore in the latest quarter.

The company's top management includes Mr.Hetal Gandhi, Ms.Radhika Piramal, Mr.Arthur William De Haast, Mr.Ravi C Raheja, Mr.Neel C Raheja, Mr.Sanjay Sethi, Mr.Hetal Gandhi, Mr.Joseph Conrad D?Souza, Ms.Radhika Piramal, Mr.Arthur William De Haast, Mr.Ravi C Raheja, Mr.Neel C Raheja, Mr.Sanjay Sethi, Mr.Joseph Conrad D?Souza. Company has B S R & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 22 Crore shares outstanding.

The Indian hospitality sector continues to witness strong demand trends and is expected to grow at 9-11% over medium term driven by the general economic growth, strong propensity for travel and potential recovery in FTA. While JM Financial has seen some increased activity in new signings (2x jump since CY22), the planned supply should take anywhere between 3-4 years to be commissioned.

Promoter/FII Holdings
Promoters held 67.42 per cent stake in the company as of 31-Dec-2024, while FIIs owned 7.52 per cent, DIIs 21.21 per cent.