Indian Hotels Company Ltd. share price target

Recommendation: we have BUY on the stock

Indian Hotels Co. Ltd.’s (IHCL) Q1FY24 consolidated revenue of INR14.7bn was marginally higher than I-sec estimate of INR14.3bn as Q1FY24 enterprise RevPAR grew 13% YoY. As per company, demand drivers remain intact heading into H2FY24 as the Men’s ODI World Cup, G20 summit and recovery in international tourist arrivals would continue to drive demand.

We recently hosted Indian Hotels Co. Ltd.’s (IHCL) senior management represented by Mr. Puneet Chhatwal, MD and CEO and Mr. Giridhar Sanjeevi, EVP and CFO for investor meetings in the USA.

Indian Hotels Co. Ltd.’s (IHCL) FY23 Annual Report reiterates the company’s plans to execute its “AHVAAN 2025” strategy which essentially focuses on four key pillars including: 1) reaching a total of 300+ hotels across the portfolio, 2) clocking a consolidated EBITDA margin of 33% by FY26E with 35% EBITDA share from management contracts and new businesses.

We attended Indian Hotels Co. Ltd.’s (IHCL) Capital Market Day where the company reiterated its “AHVAAN 2025” strategy which essentially focuses on four key pillars including: 1) reaching a total of 300+ hotels across the portfolio, 2) clocking a consolidated EBITDA margin of 33% by FY26 with 35% EBITDA share from management contracts and new businesses.

Company Outlook & Guidance: We expect the upcoming corporate travels and International tourists to add further growth to demand. Major events such as G20 and World Cricket in India would aid in the further growth of the industry.