Ace investor Rakesh Jhunjhunwala's portfolio component Indian Hotels has delivered over 100 per cent returns to investors in the last one year. Big Bull and his wife Rekha Jhunjhunwala held 2.99 crore shares or 2.12 per cent stake in in the last quarter. While Jhunjhunwala owned 1.11 per cent or 1.57 crore shares , his wife Rekha held 1.01 percent or 1.42 crore shares in the March quarter.
Holdings of promoters of the firm have fallen from 41.02 per cent to 38.19 per cent in the March 2022 quarter. FIIs/FPIs have raised holdings from 15.19 per cent to 16.03 per cent in the March 2022 quarter.
The number of FII investors rose from 227 to 267 in the last quarter. Mutual funds raised their holdings from 18.08 per cent in the December quarter to 21.43 per cent in the March quarter. The number of MF schemes holding the stock increased from 23 to 27 in the March 2022 quarter.
Institutional investors also raised their holdings from 40.49 per cent in the December quarter to 44.67 per cent in the March quarter.
Meanwhile, Indian Hotels fell 2.89 per cent at Rs 250.20 on May 5 against the previous close of Rs 257.65. Indian Hotels stock stands higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The stock has gained 123 per cent in a year and risen 38.54 percent in 2022. Total 4.72 lakh shares of the firm changed hands amounting to a turnover of Rs 11.92 crore on BSE. Market cap of the firm fell to Rs 35,538 crore on BSE.
The stock hit a 52-week high of Rs 268.85 on May 4, 2022 and a 52-week low of Rs 106.35 on May 5, 2021.
Indian Hotels reported a 181 per cent rise in net profit at Rs 74.19 crore for the fourth quarter ended March 31, 2022 against Rs 91.30 crore loss in the corresponding quarter a year ago. Sales grew 41.80 per cent to Rs 872.08 crore in Q4 of last fiscal against Rs 615 crore in the corresponding quarter of the previous fiscal.
Operating profit excluding other income zoomed 123 per cent to Rs 159 crore in the March quarter against Rs 71.31 crore in Q4 of FY20.
On an annual basis, its loss narrowed by 65.60 percent to Rs 247.72 crore in the last fiscal against Rs 720.11 crore in March 2021 fiscal.
On April 28, ICICI Securities gave a target price of Rs 292 for the Indian Hotels stock. The time period for the call is one year.
"We reiterate our BUY rating on Indian Hotels Co Ltd. (IHCL) with a revised SoTP-based target price of Rs 292/share (earlier Rs 285) owing to a 4 percent increase in FY24E EBITDA estimate, valuing the stock on 22 times Mar'24E EV/EBITDA. Our EV/EBITDA multiple of 22 times is at a 10 per cent premium with the hotel industry's long-term listed peer multiple considering IHCL's debt free balance sheet and strong recovery outlook going ahead," the brokerage said.
Brokerage Sharekhan also gave a buy call post Q4 earnings of the company.
"With a huge room inventory, Indian Hotels Co will be a key beneficiary of sustained recovery in domestic and international hospitality space. We maintain a Buy on the stock with a price target of Rs 286," said Sharekhan in a report.
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 under various brands, including Taj, SeleQtions, Vivanta, The Gateway, Ginger, Expressions, ama Stays and Trails and TajSATS.
The Tata Group's hospitality arm also operates restaurants, food and beverage business under Golden Dragon, Wasabi by Morimoto, Thai Pavilion, House of Ming and Shamiana brands.
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