Shares of Indian Hotels Company (IHCL) hit their fresh 52-week high on Thursday, October 22, after the company reported a strong performance in a seasonally weak September quarter.
It also upgraded its full year revenue growth outlook from 12%-14% to 15%-17%.
Meanwhile, global investment banking firm Nomura is positive on the stock and sees a 12.9% upside on it.
In an interaction with CNBC-TV18 on Thursday, Puneet Chhatwal of Indian Hotels said that the BRICS Summit in New Delhi aided the second quarter numbers to a certain extent, and ex-BRICS, the performance was in the high teens.
Indian Hotels is well positioned to take advantage of any inorganic opportunities that came their way, Chhatwal added.
For the Taj, its revenue per average room growth stood at 28% and on an overall basis it stood at 25%.
The company is targeting 50 openings in all of FY27. It is looking at opening over 30 hotels in the second half of the fiscal.
It is also aiming at reaching 400 operational hotels in the third quarter of this fiscal.
The Ginger brand’s revenue increased 25% to ₹193 crore and was on track for 150 operational hotels by FY27-end.
The management fee increased 25% at ₹156 crore. The company’s cash on books was at ₹4,369 crore.
Nomura Retains Buy Rating On Indian Hotels
The global investment banking firm has a “buy” recommendation on IHCL and a target price of ₹850 per share. This indicates an upside of 12.9%.
It said the company reported a robust quarter and it expects mid- high-teens consolidated EBITDA growth in the second half of FY27 and in FY28.
The second quarter’s consolidated revenue and EBITDA increased 22% and 24% from last year and were 5% and 3% ahead of consensus.
Indian Hotels Shares Are A Buy Or Sell?
Of the 31 analysts who have coverage on the IHCL stock, 25 have a “buy” rating and five have a “hold” rating.
Shares of Indian Hotels gained 5.5% to hit an intraday and fresh 52-week high of ₹794.65 apiece. The stock was trading 4.6% up at ₹787.95 apiece. The stock has risen 19.4% in the last six months and is up 6.7% this year, so far.
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