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The shares of Indian Hotels Company Limited were trading marginally lower at Rs 326 levels till 12 pm on Wednesday. In the past month, the stock has zoomed by approximately 16 per cent. 

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In the past six months, the stock has delivered a 40 per cent return and so far this year in 2022, it has rallied by approximately 77 per cent YTD. 

In September 2020, the stock was trading at Rs 88 a piece on NSE. From there it has spiked up to the current levels logging a multibagger return of 267 per cent. 

Global brokerage Jefferies has a ‘Buy’ rating on Indian Hotels Company Ltd with a target price of Rs 380 which represents an upside of 17% from the current levels. 

With improving visibility on the occupancies/pricing, the brokerage house has increased IHCL’s FY23-FY25 EBITDA estimates by 14%-19%. 

Per management, occupancies in 2QFY23 are trending closer to 1QFY23, despite 2Q being a seasonally weaker quarter (due to monsoon/school reopening, etc). Room rates are trending much higher (vs pre-Covid) for 2Q driven by better than expected occupancy and leisure demand sustaining at higher levels, it highlighted. 

The Indian Hotels Firm Limited is an Indian hospitality company that maintains a network of hotels, resorts, jungle safaris, palaces, spas, and in-flight culinary services. It is part of the Tata group. 

The company has a brand portfolio that includes names such as Taj Hotels and Resorts, Vivanta, SeleQtions, The Gateway, and Ginger. 

In Q1FY23, the company reported a multifold jump in its total revenue to Rs 1,266 crores up from Rs 344 crores which they earned in the same period a year ago. In the quarter under review, their net profit stood at Rs 166 crores as against a loss of Rs 270 crores in Q1FY22. 

The promoters of the company hold a 38.19 per cent stake in the company and the Foreign Institutional Investors (FIIs) hold a 15.07 per cent stake. The company has a market capitalization of Rs 46,439 crores and a dividend yield of 0.12% as on September 28th, 2022. 

Written by Anoushka Roy


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