Hotels, Restaurants & Tourism share price target

Sectoral Overview

In our coverage universe, EIH is the best placed on the b/s front. The fund raising of | 350 crore thorough rights issue has improved debt/equity mix to 0.1x from 0.2x. While Indian Hotels' debt/equity is 0.7x, the proposed rights issue of | 3000 crore and strong promoter backing will take care of their liquidity requirements to fund ongoing business operations and capex. Lemon Tree Hotels, being on a capex mode, is highly levered vs....

QSR Sector bounces back sharply in Q4FY21

In our coverage universe, EIH Ltd is the best placed on the b/s front. The fund raising of | 350 crore thorough rights issue would improve debt/equity mix to 0.1x from 0.2x. While Indian Hotels has a strong promoter backing, its debt/equity is 0.7x, which combined with capex requirement could lead D/E to rise further to 0.9x if current Covid issue persists for a longer period. Lemon Tree Hotels, being on a capex mode is highly levered vs. peers....

In our coverage universe, EIH Ltd is best placed on the B/S front. The recent fund raising of | 350 crore thorough rights issue would improve debt/equity mix to 0.1x from 0.2x. While Indian Hotels has a strong promoter backing, its debt/equity is 0.7x, which combined with capex requirement could lead to further rise in D/E to 0.9x if current Covid issue persists for a longer period. Lemon Tree Hotels, being on a capex mode, is...

The Indian food services industry has exhibited strong performance during the past decade

We hosted a concall with Mr. Achin Khanna and Mr. Saurabh Gupta- Managing partners at Hotelivate to discuss and understand 1) impact of Covid-19 on global and domestic hospitality industry, 2) structural changes in hospitality industry amid pandemic, 3) M&A; landscape and 4) Outlook on revitalize and revival. Hospitality industry, both at global and domestic level, has been the worst hit due to Covid-19 and it disrupted all segments like air-travel, hotels, restaurants and online as well as off-line travel agents. We believe the pace of recovery is albeit slower than anticipated and the meaningful revival in key operational parameters may be seen in...