Indian Hotels Company Ltd. share price target

Indian Hotels’ (IH) transformational journey over the past decade is marked by bold strategic moves—embracing an asset-light model, reimagining Ginger Hotels, and expanding into new segments.

We recently hosted Indian Hotels’ (IHCL) management for meetings with investors in Singapore. IHCL reiterated its ‘Accelerate 2030’ strategy – doubling operational + pipeline hotels to 700+ over FY24–30; thus, doubling its consol.

BUY

With its hospitality category growing 15.3 y/y and revenue, 29% y/y to Rs25.3bn, Indian Hotels reported a strong Q3. EBITDA rose 31.3% y/y to ~Rs9.6bn with a flat 38% margin y/y

Indian Hotels (IH) reported strong consolidated revenue growth of 29% YoY in 3QFY25, led by healthy RevPAR growth of 15% (ARR up 13% and OR up 120bp YoY) in its standalone business.

Indian Hotels Company Ltd’s (IHCL’s) Q3FY25 numbers were strong with domestic like-for-like (LFL) RevPAR growth at 13% y-o-y, management fees rising 32% y-o-y and new businesses seeing 40% y-o-y growth. Consolidated revenue/adjusted PAT (including Taj SATS) rose 29%/40% y-o-y, respectively.

The company plans to expand its portfolio to 700 hotels (including pipeline), double consolidated revenues to INR150b, and achieve 25%+ of revenues from innovative and reimagined businesses like Ginger, Qmin, and TajSATS.

Consolidated revenues are set to grow by 2x to Rs. 1,5000 crore by 2030; Like-for-like (LFL) RevPar
to grow at CAGR of 8%, management income to clock a 15% CAGR and Re-imagined businesses
contribution to increase to 25% growing at 30% CAGR over the next five years.

We maintain our BUY recommendation on the stock.

? Indian Hotels Company Ltd’s (IHCL’s) Q2FY2025 performance on like-for-like (LFL) basis was strong despite a lean season with hotel business revenues growing by 16% y-o-y and EBIDTA growing by 30% y-o-y.

Indian Hotels (IH) reported a strong consolidated revenue growth of 27% YoY in 2QFY25 led by healthy demand across regions. Like for like revenue growth stood at ~16% YoY (ex. consolidation of TajSATS).

We maintain a Buy on Indian Hotels Company Ltd (IHCL) with a revised PT of Rs. 774 (rolling over to September 2026 earnings). The stock trades at 26x/22x its FY2026E/27E EV/EBIDTA, respectively.

We maintain BUY recommendation on Stock with TP of Rs 670

IHCL registered mixed performance in Q1FY2025 with consolidated revenues growing by 5.7% y-o-y (lower than our and street expectation of 8-9% y-o-y revenue growth), while EBIDTA margin expansion of 103 bps to 29%

Indian Hotels’ (IHCL) FY24 annual report highlights the benefits that it has derived from the hotel industry’s tailwinds and the company’s strong pan-India brand-scape. IHCL clocked consol.