Business Today

Indian Hotels stock rises over 9% after Motilal Oswal initiates coverage

The stock has risen 28.27% during the last one year and gained 20.17% since the beginning of this year. The midcap stock is trading above its 50-day and 200-day moving averages of 126.56 and 132.63, respectively. Enthused by the buy rating for the Indian Hotels stock, other hotel stocks too rose in today's  trade.

twitter-logo BusinessToday.In        Last Updated: November 22, 2018  | 17:48 IST
Indian Hotels stock rises over 9% after Motilal Oswal initiates coverage

The Indian Hotels stock rose in early trade after brokerage Motilal Oswal initiated coverage on the stock with a 'buy' call. The stock rose up to 9.29% to Rs 147 level on the BSE, its highest since June 11. It has been gaining for the last two days and risen 5.96% during the period. At 12:25 pm, the stock was trading 4.42% higher at 140.45 on the BSE. It closed 2.79% higher at 138.50 level in trade today.

The stock has risen 28.27% during the last one year and gained 20.17% since the beginning of this year. The midcap stock is trading above its 50-day and 200-day moving averages of 126.56 and 132.63, respectively.

Enthused by the buy rating for the Indian Hotels stock, other hotel stocks too rose in today's  trade. While EIH Ltd rose 2.16%, Lemon Tree Hotels was trading 2.30 percent higher on the BSE.

Stocks of India Tourism Development Corporation (3.77%), Taj GVK Hotels and Resorts (11.91%)and Oriental Hotels (2.54%) were among the other gainers.

Motilal Oswal said the company is an attractive investment candidate in the upcoming industry upcycle and has an "invaluable asset" in the form of a strong brand name.

The strong presence in high-demand, high-occupancy micro markets of Mumbai, NCR, Bangalore and Goa places it well to cater to rapid growth in the domestic market.

The company is set to benefit from operating leverage in the impending upcycle, led by its higher fixed-cost proportion and efforts to rationalize expenses, the brokerage added.

The brokerage expects Indian Hotels to log revenue compounded annual growth rate (FY18-20) of 9% and earnings before interest, tax, depreciation and amortisation CAGR of 25%, supported by annual recurring revenue growth of 7%. Around 85% of the Indian Hotel's room inventory is in the domestic market, while rest is outside India. The brokerage initiated coverage on the stock with a target price of Rs 163, implying an upside of 21%.

Indian Hotels is engaged in short-term accommodation activities, and restaurants and mobile food service activities. The company is primarily engaged in the business of owning, operating and managing hotels, palaces and resorts. The company's segments include hoteliering and others, which consists of air catering and investing activities. Its area of business includes Taj, Taj Safaris, Vivanta by Taj, The Gateway Hotel, Ginger, and Taj Trade and Transport.

The company has approximately 110 hotels in over 60 locations, including over 25 Ginger hotels across India, with an additional approximately 20 international hotels in the Maldives, Malaysia, Australia, the United Kingdom, the United States, Bhutan, Sri Lanka, Africa and the Middle East.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close