Shares of Indian Hotels Company Ltd (IHCL) appreciated to the tune of 4.48% on Wednesday’s early deals to reach an intraday high of ₹ 363.00 apiece on the National Stock Exchange (NSE) after reporting robust results.
The company’s total income grew by 73.27% to ₹ 1,654.54 in the January to March quarter (Q4FY23), against ₹ 954.88 crores reported in the corresponding quarter last year (Q4FY22). Its net profit grew by a whopping 342.47% to ₹ 328.27 crores in Q4FY23, against ₹74.19 in Q4FY22.
For the full year, IHCL’s revenue grew by 85.02% to ₹ 5,941.81 crores against ₹ 3211.38 crores reported in the financial year 2021-22. It reported a profit of ₹ 1,002.59 crores in the financial year 2022-23 against a net loss of ₹ 247.72 crores in the previous financial year.
The company has recommended a dividend of ₹ 1 per equity share of ₹ 1 each, i.e., at 100 percent of its face value, subject to the approval of members at the forthcoming annual general meeting.
“IHCL achieved a record-setting year with a number of significant accomplishments including the highest-ever full-year consolidated revenue, an all-time high and industry-leading EBITDA margin and PAT of over INR 1,000 crores, a historic first for the company. This performance was enabled by consecutive four quarters of sustained high demand, additionally bolstered by IHCL demonstrating RevPAR leadership across its brandscape in all its key markets,” said Mr Puneet Chhatwal, Managing Director & CEO, IHCL.
Indian Hotels Company is a Tata Group company that provides short-term accommodation activities, restaurants and mobile food service activities. It primarily owns, operates and manages hotels, palaces and resorts under various brands like Taj, Vivanta, Ginger, The Gateway, SeleQtions, and so on. It owns a portfolio of more than 260 hotels, and 36 signings at a rate of 3 hotels a month.
IHCL is a large-cap company with a market capitalization of ₹ 49,352 crores. It has a low return on equity of 13.33%. However, it has an ideal debt-to-equity ratio of 0.39. The company’s shares were trading at a price-to-earnings ratio (P/E) of 49.21 which is slightly higher than the industry P/E of 39.26.
Brokerage firm Motilal Oswal has a buy rating on the shares of IHCL with a target price of ₹ 420.00. This translates to an upside of 17.81% as compared to its share price of ₹ 356.50 apiece at 12:27 PM on Wednesday.
Written by Simran Bafna
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