Indian Hotels Company Ltd. share price target

In May’22, Indian Hotels Co. Ltd. (IHCL) had unveiled its “AHVAAN 2025” strategy which essentially focuses on four key pillars including: 1) reaching a total of 300+ hotels across the portfolio.

IHCL's growing network and robust pipeline of new properties across brands as well as the growth of new businesses, IHCL is well-positioned to meet market demand and capture opportunities. Therefore, we recommend a BUY with a TP of Rs 360/share.

Indian Hotels Co. Ltd.’s (IHCL) Q2FY23 consolidated revenue of Rs12.3bn was 3% higher than I-sec estimate led by stronger than expected ARRs.

We initiate coverage on Indian Hotels Company Ltd (IHCL) with a BUY rating and a target price of Rs 360 (EV/EBITDA 26x for FY25E EBITDA), implying an upside of 16% from the CMP.

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Indian Hotels Co. Ltd.’s (IHCL) Q1FY23 consolidated revenue of Rs12.7bn was 9% higher than I-sec estimate led by stronger than expected ARRs which translated into EBITDA of Rs3.8bn (20% higher than I-sec estimate).

Indian Hotels Co. Ltd.’s (IHCL) FY22 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, 3) achieving a 50:50 ratio between owned/leased and management contract room keys and 4) retaining a net cash balance sheet while pursuing its growth plans.