07-05-2025
Axis Securities retains Buy on Indian Hotels Company, lowers target price to Rs 900
Indian Hotels' key products/revenue segments include Income from Rooms, Restaurants & Other Services and Other Operating Revenue for the year ending 31-Mar-2024.
Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2486.78 crore, down -4.05% from last quarter Total Income of Rs 2591.73 crore and up 27.43% from last year same quarter Total Income of Rs 1951.46 crore. The company has reported net profit after tax of Rs 540.01 crore in the latest quarter.
The company's top management includes Mr.N Chandrasekaran, Chhatwal, Narayan, Ravichandar, Anantharaman, Munjee. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 142 crore shares outstanding.
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Investment Rationale
Promoter/FII Holdings
Promoters held 38.12 per cent stake in the company as of 31-Mar-2025, while FIIs owned 26.96 per cent, DIIs 18.89 per cent. Axis Securities has a Buy call on Indian Hotels Company with a revised target price of Rs 900 (earlier Rs 950). The current market price of Indian Hotels Company is Rs 738.15. Indian Hotels, incorporated in 1902, is a Mid Cap company with a market cap of Rs 107013.63 crore, operating in Tourism & Hospitality Hotels' key products/revenue segments include Income from Rooms, Restaurants & Other Services and Other Operating Revenue for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2486.78 crore, down -4.05% from last quarter Total Income of Rs 2591.73 crore and up 27.43% from last year same quarter Total Income of Rs 1951.46 crore. The company has reported net profit after tax of Rs 540.01 crore in the latest company's top management includes Mr.N Chandrasekaran, Chhatwal, Narayan, Ravichandar, Anantharaman, Munjee. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 142 crore shares Securities believes the hospitality cycle has more momentum, and is likely to be driven by a relatively constrained supply of rooms and an increase in Foreign Tourist Arrivals (FTAs), which remain below pre-COVID levels (10.56 million in 2019 vs. 9.7 million in 20224). The increase in FTAs is expected to impact ARRs positively. Additionally, the steady rise of the Indian middle class and their increased spending power is projected to contribute an additional Rs 5,200 Cr annually to the hospitality market. Management guided double-digit growth in revenue while maintaining stability in margins. The current valuation is EV/EBITDA 33x for FY27E earnings and the current target price is Rs 900/share (Earlier: Rs 950/share). The brokerage has maintained its BUY recommendationPromoters held 38.12 per cent stake in the company as of 31-Mar-2025, while FIIs owned 26.96 per cent, DIIs 18.89 per cent.
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