Buy Indian Hotels Company, target price Rs 420: Motilal Oswal

Motilal Oswal Financial Services has buy call on Indian Hotels Company with a target price of Rs 420.0. The current market price of Indian Hotels Company is Rs 360.65 .

Indian Hotels Company, incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 50949.76 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.


Investment Rationale
The brokerage expects IH’s revenue/EBITDA/Adj. PAT CAGR of 12%/19%/21% over FY23-25. They reiterate buy rating with an SoTP-based TP of INR420

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 31-12-2022, the company has a total of 142 Crore shares outstanding.



Promoter/FII Holdings
Promoters held 38.19 per cent stake in the company as of 31-Dec-2022, while FIIs owned 19.0 per cent, DIIs 26.36 per cent.