Indian Hotels Company Ltd. share price target

BUY with TP of Rs 150 @ 20x Sep20E EV/E in-line with its historic average. Indian Hotels (IHCL) 2QFY19 consolidated performance was in-line and healthy, in a seasonally weak quarter. Revenue/EBITDA at Rs 9.6/1bn grew by 15.3/81.8% YoY. APAT increased to Rs 0.4bn from loss of Rs 0.6bn in 2QFY18 led by higher EBITDA and lower finance costs (-34.8% YoY) owing to Rs 15bn rights issue in 2HFY18.

ICICI Securities Ltd | Retail Equity Research Indian Hotels reported a good set of Q2FY19 numbers. Consolidated revenues increased 13.3% YoY to | 964.5 crore (vs. I-direct estimate of | 909.6 crore) mainly led by 8.1% YoY increase in RevPAR of domestic segment against industry RevPAR growth of 3.7% YoY. RevPAR of the international segment also showed an improvement with growth of 5.4% YoY during the quarter EBITDA margin improved 388 bps YoY to 10.3% YoY. It remained...

ICICI Securities Ltd | Retail Equity Research Indian Hotels reported a mixed set of Q1FY19 numbers. Consolidated revenues increased 7.5% YoY to | 979.7 crore (vs. I-direct estimate of | 970.4 crore) mainly led 9.7% YoY increase in RevPAR of domestic segment. However, RevPAR of international segment remained weak with a drop of 0.8% YoY during the quarter Though EBITDA margin improved 136 bps YoY to 11.3% YoY, it...

ICICI Securities Ltd | Retail Equity Research Indian Hotels reported a good set of Q4FY18 numbers. The results were above our estimates on all front...

Indian Hotels Co Ltd Q3FY18 results comment Revenue increased by 40.58% to Rs. 1197.26 Cr in Q3FY18 when compared to the previous quarter. Also, it grew by 5.76% when compared with Q3FY17.

EBITDA margin declined 16 bps YoY to 23.4% (vs. I-direct estimate of 24.6%) led by 174 bps YoY decline in international margins at 11.4% while domestic margins improved 28 bps YoY to 30.3% Net profit increased 16% YoY to | 107.9 crore Demand increase, lower room supply in domestic market to drive growth The hotel industry had been reeling under pressure mainly led by lower occupancy and subdued ARR (driven by room supply exceeding demand). However, in recent years, the industry has been witnessing...

Indian Hotels reported weak Q2FY18 numbers on account of the lean season and poor operating performance of international segment Consolidated revenues declined 4.0% YoY. Domestic standalone revenues declined 1.2% YoY while subsidiaries revenue dropped 7.9% YoY due to sale of Taj Boston (ex-Taj Boston). The company reported revenue growth of 1% YoY The company reported an EBITDA margin of 6.4% (down 156 bps YoY) below our estimates. On a standalone basis, its margins...

(budget). In 1903, the group had started its hotel business by unveiling its first property The Taj Mahal Palace in Mumbai and since then it has expanded its business to around 137 hotels with over 16,000 rooms across the world. Further, company plans to open 10 hotel properties under the Taj brand and another 11 under Ginger brand over the next two years, which will result in a total of 1,883 room keys. Taj is one of the most well recognized hotel brands in the world, known for its luxury and best in class...

The Indian Hotels (IHCL) board has approved the rights issue of equity shares to existing shareholders of the company for an amount not exceeding | 1500 crore. The same is expected to be used to partly repay debt, fund expansion of Sea Rock Hotel (as per media sources) and other capex requirements. Since the company has not specified the share of funds to be utilised towards debt repayment and capex, we assume the same at 50:50 ratio for debt repayment and capex. Accordingly, we expect EPS dilution of 10.0% and 6.3% for FY18E and FY19E,...

Indian Hotels reported a weak set of Q1FY18 numbers on account of the lean season and poor operating performance in the international segment. Consolidated revenues declined 4.2% YoY due to sale of Boston Hotel. Revenues excluding Boston increased 3.4% YoY led...