Shares of Indian Hotels Company Ltd (IHCL) rose to a new all-time high in the early morning trading on Wednesday, with the stock price jumping over 3% within a few minutes of the opening bell. So far this year, Indian Hotels Company share price has rallied over 13%.
Indian Hotel Company stock was last trading at Rs 359 apiece on NSE at 10:00 am. In the last 1 year, the Rekha Jhunjhunwala portfolio stock has rallied nearly 40%.
Late investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala, who holds 3,00,16,965 Indian Hotels shares or 2.11% stake in the company, is one of the major shareholders of Indian Hotels Company Ltd as per the shareholding pattern for January to March 2023 quarter.
According to experts, the hotel or hospitality theme is expected to perform well for the next two to three years due to the upcoming G-20 summit and World Cup cricket events in India, which will be beneficial for the Indian hospitality industry for the next two quarters.
Indian Hotels Company, being a significant Tata group hospitality company and an industry leader, is expected to attract the stock market bulls' attention in all-time horizons. The analysts recommend Indian Hotel shareholders to hold the stock and suggest a 'buy on dips' strategy for this Tata Group stock.
Analysts at HDFC Institutional Equities believe that given the strong demand in the industry and supply trailing the same, IHCL is likely to report strong numbers, going ahead. The brokerage maintains 'Add' call on the stock with a revised FY25 EV/EBITDA multiple of 21x and a revised INR-based target price of Rs 386 per share.
Axis Securities also has a 'buy' rating on Indian Hotels Company stock with a target price of Rs 385 per share. "The current demand is led by strong domestic consumption patterns and supply constraints in key metro cities. We expect increasing corporate travel and international tourists would add further growth to demand. Major events such as G20 and World Cricket in India would aid in the growth of the industry," the brokerage said.
Motilal Oswal Financial Services expects Indian Hotel Company's strong momentum to continue in FY24, led by improvement in occupancy due to multiple large global events; an increase in ARR due to better demand, upgrades in hotels and corporate rate hikes; higher income from management contracts; and value unlocking by launching reimagined and new brands.
Factoring in the 4QFY23 performance, analysts at Motilal Oswal have raised their FY24/FY25 EBITDA estimates by 5%/3%, aided by better-than-expected ARR, addition of new owned/leased and management hotels, and the normalization of inbound travel. The brokerage maintains 'buy' call Indian Hotel Company stock with an SoTP-based target price of Rs 420.
As per Sumeet Bagadia, the Executive Director at Choice Broking, IHCL stock is in an uptrend, and it may go up to Rs 375 to Rs 380 apiece levels in the short term. He advises shareholders to hold it for the given short-term targets and maintain a 'buy on dips' strategy.
Indian Hotels Company stock has strong support placed at Rs 330 levels, High-risk investors can buy Indian Hotel shares at a 5-7% dip and hold the stock with stop loss at Rs 330 for a Rs 375 to Rs 380 short-term target, said Sumeet Bagadia.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.