Buy Indian Hotels Company, target price Rs 237: ICICI Securities
Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 22506.72 Crore) operating in Tourism & Hospitality sector.
By ETMarkets.com | Updated:
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ICICI Securities has buy call on Indian Hotels Company Ltd. with a target price of Rs 237. The current market price of Indian Hotels Company Ltd. is Rs 188.75. Time period given by analyst is one year when Indian Hotels Company Ltd. price can reach defined target. .
Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 22506.72 Crore) operating in Tourism & Hospitality sector.
Indian Hotels Company Ltd. key Products/Revenue Segments include Income from Rooms, Restaurants & Other Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 752.28 Crore, up 103.15 % from last quarter Total Income of Rs 370.30 Crore and up 132.52 % from last year same quarter Total Income of Rs 323.54 Crore. Company reported net profit after tax of Rs -118.35 Crore in latest quarter.
Investment Rationale
The brokerage believes IHCL is well poised to benefit from the expected recovery in the hotel business cycle from H2FY23 (Oct’22) which factors in the impact of an Omicron wave. The brokerage is enthused by the company’s efforts to leverage its existing brand equity to focus on new business segments, focus on cost optimisation, asset-light management contract model to expand room portfolio, and taking steps to de-lever its balance sheet through the recent rights issue and possible QIP fund raise (source: Company presentation Link). Key risks are further Covid waves globally and in India impacting demand and rise in operating costs denting margins.
Promoter/FII Holdings
Promoters held 40.75 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.48 per cent, DIIs 26.93 per cent.
Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 22506.72 Crore) operating in Tourism & Hospitality sector.
Indian Hotels Company Ltd. key Products/Revenue Segments include Income from Rooms, Restaurants & Other Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 752.28 Crore, up 103.15 % from last quarter Total Income of Rs 370.30 Crore and up 132.52 % from last year same quarter Total Income of Rs 323.54 Crore. Company reported net profit after tax of Rs -118.35 Crore in latest quarter.
Investment Rationale
The brokerage believes IHCL is well poised to benefit from the expected recovery in the hotel business cycle from H2FY23 (Oct’22) which factors in the impact of an Omicron wave. The brokerage is enthused by the company’s efforts to leverage its existing brand equity to focus on new business segments, focus on cost optimisation, asset-light management contract model to expand room portfolio, and taking steps to de-lever its balance sheet through the recent rights issue and possible QIP fund raise (source: Company presentation Link). Key risks are further Covid waves globally and in India impacting demand and rise in operating costs denting margins.
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Promoter/FII Holdings
Promoters held 40.75 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.48 per cent, DIIs 26.93 per cent.
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