Indian Hotels shares climbed 90% in a year, more upside ahead?

Shares of Indian Hotels Ltd have delivered 90% returns in a year. The Tata Group stock closed 0.96% higher at Rs 591.35 in Thursday’s trade against Rs 312.5 level on March 28, 2023. Indian Hotels stock touched its record high of Rs 602.75 on February 23, 2024.

The hospitality sector scrip saw 1.68 lakh shares of the firm changed hands amounting to a turnover of Rs 9.90 crore on BSE. Market cap of the firm rose to Rs 84,174 crore on BSE. The Tata Group’s multibagger stock fell to a 52-week low of Rs 310 on March 29, 2023. 

Abhijeet from Tips2trades said, "Indian Hotels stock price looks bullish on the Daily charts with strong support at Rs 569. A daily close above resistance of Rs 600 could lead to target of Rs 637 in the near term."

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal has a buy call on Indian Hotels with a stop loss of Rs 572 and a price target of Rs 610 on the upside.

An analyst from LKP Securities has a 'Buy' call on the Indian Hotels stock with a target of Rs 630. "The stock may rally towards the Rs 630 zone in the short term. Support will be positioned at Rs 574 on the lower end," he said.

In terms of technicals, the relative strength index (RSI) of the stock stands at 62.2, signaling it's trading neither in the overbought zone nor in the oversold zone. Indian Hotels stock is trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has risen 154 percent in two years and gained 463% in three years.   

On March 26, the Tata Group company said it has infused US$ 6.5 mn as equity in its Wholly Owned Subsidiary in Netherlands i.e. IHOCO BV on March 26, 2024. The investment amount will be used by IHOCO BV to further make investment in its subsidiary viz. United Overseas Holding Inc in the USA to repay its debt & for other operational purposes.