Shares of rose 2 per cent in early trade on Tuesday after the company reported a strong March quarter performance, supported by healthy domestic demand and continued traction in its hospitality business. The stock climbed to ₹674.90 from the previous close of ₹661.30, before trading largely flat at ₹659.60 around 9.54 am.
Indian Hotels stock in focus
The company posted a 1 compared with ₹522 crore in the corresponding quarter last year. Revenue rose 14 per cent y-o-y to ₹2,845 crore, although the company said the West Asia conflict impacted business momentum in March.
Brokerages remained constructive on the long-term outlook, driven by strong demand trends, expansion plans and growth in new business segments.
Motilal Oswal reiterated its buy call with a sum-of-the-parts-based target price of ₹785. The brokerage said the company’s growth outlook remains optimistic despite near-term geopolitical and macroeconomic uncertainties, aided by strong traction in the core business, strategic acquisitions and expansion across niche hotel categories. It expects momentum to continue on the back of a robust room addition pipeline, favourable demand-supply dynamics and rising MICE activity in India.
Elara Capital revised its rating to accumulate from buy and lowered the target price to ₹716 from ₹858. The brokerage said subdued profitability in the owned hotel portfolio, which contributes nearly 80 per cent of revenue and 77 per cent of EBITDA, remains a drag. It also cited slower operationalisation of new large hotel openings and factored in the impact of the West Asia conflict and realignment of hotel launches into its revised earnings estimates.