Indian Hotel Company Stock Price: Amid this rise in hotel demand driven by more domestic travel post the pandemic and the strong outlook ahead for the industry, shares of Indian Hotels Company Ltd. traded 2.21 per cent up at Rs 346.45 on Tuesday early trade. The stock had closed at Rs 338.95 in the previous session.

IHCL on Thursday reported a 343 per cent rise to Rs 328.27 crore for the March 2023 quarter. This is against a net profit of Rs 74.2 crore in the corresponding quarter last fiscal. The revenue from operations rose by 86.4 per cent at Rs 1,625.4 crore as compared to Rs 872.1 crore in the year ago period.

“IHCL achieved a record setting year with a number of significant accomplishments including the highest ever full year consolidated revenue, an all-time high and industry leading EBITDA margin and PAT of over INR 1,000 crores a historic first for the company. This performance was enabled by consecutive four quarters of sustained high demand, additionally bolstered by IHCL demonstrating RevPAR leadership across its brandscape in all its key markets,” said Puneet Chhatwal, Managing Director & CEO, IHCL.

With a record signing of 36 hotels in FY 2023, IHCL portfolio now stands at 260+ hotels. It has opened 16 new hotel openings this fiscal. This included four hotels each under Taj and SeleQtions brands, three Vivanta and five Ginger branded hotels. It has also been able to achieve an optimal 50:50 mix between our owned/leased and managed hotels.

“The iconic brand Taj has reached a portfolio of 100 hotels and has more than doubled its room inventory over the past five years,” said IHCL in its regulatory filing.

Ginger hotels has reported a turnaround in FY 2022-23, led by a 50% lean luxe portfolio, the company achieved revenue of Rs 307 crores, EBITDA margin of 37.4 per cent and a profit before tax of Rs 48 crores.

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“IHCL’s performance reflects the affection and loyalty of our guests, the continuous guidance and support from our Board and the remarkable passion and commitment of the 28,000-strong IHCL team. The management’s focus remains on value creation for all stakeholders, offering customers a unique hospitality ecosystem across segments, leading the way in engaging local communities in our value chain, pioneering new destinations in the country and delivering continued superior performance,” he added.

The board has recommended a dividend of Rs 1 per equity share of Rs 1 each fully paid up share, subject to the approval of the members at the forthcoming Annual General Meeting

The scrip has climbed 35.2 per cent in the last one year till date, while the 30-share index has gained 7.72 per cent during the same period.

The stock’s 52-week high price stood at Rs 350.65 and the 52-week low price at Rs 207.25.

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Jefferies maintained a buy rating on Indian Hotels with a target price of Rs 405. The global investment bank sees an incremental demand driver for FY24.

“The average room rates (ARRS) are settling at higher levels which is a positive sign. Diversifying topline + asset light growth are key focus areas for the company going forward,” said the note.

Motilal Oswal maintained its buy rating on Indian Hotels with a target price of Rs 420 post March quarter results.

Factoring in the 4QFY23 performance, we raise our FY24/FY25 EBITDA estimates by 5%/3%, aided by better-than-expected ARR, the addition of new owned/leased and management hotels, and the normalization of inbound travel.

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