• Thu. Jun 8th, 2023

Indian Hotel Company share price: Amid this surge in hotel demand driven by more domestic travel post-pandemic and the bright outlook ahead for the industry, shares of Indian Hotels Company Ltd. traded up 2.21% to 346.45 rupees on Tuesday in early trading. The stock had closed at Rs 338.95 in the previous session.

On Thursday, IHCL reported an increase of 343% to Rs 328.27 crore for the March 2023 quarter. This is against a net profit of Rs 74.2 crore in the corresponding quarter of the previous financial year. Operating income increased by 86.4% to Rs 1,625.4 crore from Rs 872.1 crore the previous year.

“IHCL had a record year with a number of significant achievements, including the highest consolidated revenue ever for the full year, a record and industry-leading EBITDA margin and a PAT of more than 1 INR 000 crores, a historic first for the company. This performance was enabled by four consecutive quarters of sustained strong demand, further bolstered by IHCL demonstrating RevPAR leadership across its brand landscape in all of its key markets,” said Puneet Chhatwal, Managing Director and CEO of IHCL.

With a record signing of 36 hotels in FY2023, IHCL’s portfolio now stands at over 260 hotels. It opened 16 new hotel openings this fiscal year. This included four hotels each under the Taj and SeleQtions brands, three Vivanta hotels and five Ginger hotels. He was also able to achieve an optimal 50/50 mix between our owned/leased and managed hotels.

“The iconic Taj brand has reached a portfolio of 100 hotels and more than doubled its room inventory in the past five years,” IHCL said in its regulatory filing.

Ginger Hotels reported a turnaround in the 2022-23 financial year, led by a 50% lean luxury portfolio, the company achieved revenue of Rs 307 crore, EBITDA margin of 37.4% and a pre-tax profit of Rs 48 crores.

“IHCL’s performance reflects the affection and loyalty of our guests, the continued guidance and support of our Board of Directors, and the remarkable passion and commitment of the 28,000 strong IHCL team. Management remains focused on creating value for all stakeholders, offering guests a unique hotel ecosystem across all segments, paving the way for local community engagement in our value chain, paving the way for new destinations in the country and delivering continued superior performance,” he added.

The Board has recommended a dividend of Rs 1 per capital share of Rs 1 each fully paid share, subject to approval by members at the next Annual General Meeting

The certificate has climbed 35.2% in the past year to date, while the 30-stock index has gained 7.72% over the same period.

The 52-week high price of the stock stood at 350.65 rupees and the 52-week low price at 207.25 rupees.

Should we invest in the hotel park before the end of year celebrations?

Jefferies maintained a Buy rating on Indian hotels with a target price of Rs 405. The global investment bank sees an additional demand driver for FY24.

“Average Room Rates (ARRS) are at higher levels, which is a positive sign. Revenue diversification and mild asset growth are key areas for the company going forward” , indicates the note.

Motilal Oswal maintained its Buy rating on Indian hotels with a target price of Rs 420 after the March quarter results.

Taking into account the performance of 4QFY23, we are increasing our EBITDA estimates for FY24/FY25 by 5%/3%, helped by better than expected ARR, the addition of new owned/leased and managed hotels , and the standardization of inbound travel.

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