ICC World Cup 2023: Tata group firm among key beneficiaries of mega event; here're share price targets

With ICICI Cricket World Cup 2023 kicking off this week, one company that analysts said would be among beneficiaries of the mega event is Indian Hotels Company Ltd (IHCL). IHCL has properties within 5-6 km radius of cricket stadiums in six out of the 10 cities that are hosting ICC Cricket World Cup 2023 matches.

"Apart from bookings by spectators, the rooms are also booked for players, support staff, cricket board

officials, media etc. Due to such strong demand, occupancies during the match days are already running high, with rooms not available (100 per cent occupancy) at a few of hotels. This has led to a sharp rise in average room rentals (ARRs) during this period and rates are likely to increase further closer to match dates," Sharekhan said.

As per the brokerage, the ARRs in IHCL’s Delhi and Bengaluru properties is expected to jump by 10-100 per cent and 15-70 per cent, respectively, during the World Cup period, compared with the off-season rates.

"While in Mumbai, Chennai and Kolkata, ARRs are expected to surge by 20-160 per cent, 70-150 per cent and 70-

170 per cent, respectively. Highest rise in ARR is likely in Ahmedabad with room rentals expected to be up by over 30-500 per cent during the World Cup season," Sharekhan said while suggesting a target of Rs 492 on the stock.

On Friday, the scrip was up 1.2 per cent at Rs 422.90.

"We believe events like ICC World Cup, Miss World pageant finale and festive season would drive healthy revenue growth for the industry," IDBI Capital said. This brokerage has a target of Rs 447 on the stock.

Emkay Global has initiated coverage on IHCL with a buy rating. "With focus on its asset-light model, IHCL is well-entrenched to log managed rooms/management & operating fee CAGR of 20 per cent/25 per cent over FY23-26E. Boost in the Ginger room count by 60 per cent in 5 years and contribution from Qmin, amã Stays & Trails, and The Chambers will aid in IHCL registering consolidated revenue/Ebitda CAGR of 13 per cent/19 per cent in FY23-26E," it said.

This brokerage likes IHCL’s diversified top line, operational efficiency and debt-free balance sheet and suggested a target of Rs 485 on the stock.

Antique Stock Broking expects IHCL should to see a 12 per cent YoY rise in pricing to Rs 12,300 in the quarter gone by.

"We forecast IHCL's RevPar to increase 18 per cent YoY on a standalone basis led by ADR of Rs 14.4, while occupancy to improve 400 basis points YoY to 74 per cent. The international portfolio is likely to be impacted by seasonality. We forecast revenue growth of 17 per cent YoY to Rs 1,440 crore. Ebitda margin should improve 300 bps on YoY basis, should decline marginally on sequential basis," it said while suggesting a target of Rs 400 on the stock.

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