Multibagger Jhunjhunwala stock hits record high; what should investors do?

Shares of Indian Hotels Ltd hit their record high amid a record run in Sensex and Nifty on Wednesday. Indian Hotels shares rose 1.39% to an all-time high of Rs 440.55 against the previous close of Rs 434.50 on BSE. The stock has climbed 254% in the last three years. Total 1.32 lakh shares of the firm changed hands amounting to a turnover of Rs 5.78 crore on BSE. Market cap of the firm rose to Rs 62,320 crore on BSE. The Tata Group’s multibagger stock fell to a 52-week low of Rs 280.20 on January 27, 2023.   

Aditya Gaggar Director of Progressive Shares said, “Indian Hotels is in a secular uptrend with a higher top higher bottom formation and recently, it has given a breakout from a V-shaped pattern. A positive crossover in MACD and ADX confirms the price behavior. As per the V-shaped pattern as well as the Higher Top Higher Bottom formation, the target is Rs 490” 

Net profit in Q2 rose 37% to Rs 167 crore on a year-on-year basis, while IHCL revenue gained 18% to Rs 1,481 crore. IHCL's EBITDA (earnings before interest, taxes, depreciation, and amortisation) surged 26% to Rs 402 crore, while the EBITDA margin expanded by 180 basis points to 27.2%. 

Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 3 crore shares or 2.11 per cent stake in the public sector lender at the end of September 2023 quarter. 

ICICI Securities revised its target to Rs 458 against the earlier Rs 443 post q2 earnings.  

"We retain our BUY rating with a revised SOTP-based target price of Rs 458 against Rs 443 earlier as we roll forward to 23x Sep’25E EV/EBITDA. Key risks are fresh Covid waves and discretionary consumption slowdown,” said the brokerage.  

 In terms of technicals, the relative strength index (RSI) of the stock stands at 72.2, signaling it's trading in the overbought zone. Indian Hotels stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has risen 38 percent in 2023 and gained 34% in a year.   

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.

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