Motilal Oswal Places Buy On Tata Group’s Large Cap Stock, Scrip Jumps 179.72% In 2 Years

Leading broking Firm Motilal Oswal Financial Services has placed a Buy on India Hotels Company Ltd. (IH) with Buy with a Target Price of Rs 440 per share. Given the target price, if you buy the stock at the current market price, it can fetch up to 12% gains. IH is Tata Group's Large cap Hotels sector company. The market cap of the company is Rs 56,112.92 Crore.

Indian Hotels (IH) reported consolidated revenue growth of 16% YoY, aided by strong growth in standalone ARR (up 11% YoY) and better occupancy (up 430bp YoY). EBITDA grew 9% YoY due to high operating expenses in 1QFY24 vs. a lower base YoY. Consolidated management contract revenue grew 20% YoY to INR980m in 1QFY24, according to the brokerage firm.

Buy for a Target Price of Rs 440 per share

Motilal Oswal Financial Services said, "We expect the strong momentum to continue in FY24, led by: 1) a further improvement in occupancy due to multiple large global events such as G20 and ICC Cricket Men's World Cup in CY23; 2) an increase in ARR due to better demand, upgrades in hotels and corporate rate hikes; 3) higher income from management contracts; and 4) value unlocking by scaling up reimagined and new brands."
It added, "We maintain our FY24/FY25 EBITDA estimates in anticipation of a strong demand environment and improving ARR. Maintain BUY with our SoTP-based TP of INR440."

Stock Outlook

The stock is currently trading at Rs 395.05 per share, up 0.88% from its previous close on BSE. Its 52-week-high is Rs 405.20 per share and 52-week-low 262.20 per share. The stock jumped 0.79% in 1 week. It gave 16.55% in 3 months and 31.44% in 6 months, respectively. The stock has given 50.38% in 1 year, 179.72% in 2 years, 433.64% in 3 years and 206.19% in 5 years, respectively.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal Financial Services. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.