Jhunjhunwala's Tata Group holding in a downtrend; buy, sell or hold?

Shares of Indian Hotels Company are in a downtrend, slipping up to 12% in a year.  Investors are sitting on losses of 17% in six months and 9% this year. The Tata Group stock trades below all the short-term and long-term simple moving averages, signalling bearishness in the hotel sector stock. 

However, Indian Hotels stock has delivered multibagger returns in the long term. 

The stock gained 114% in three years and rose 461% in five years. 

Late investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala owned 1.42 crore shares or 1 per cent stake in Indian Hotels in the December 2025 quarter. 

Axis Direct is bullish on the outlook of the stock with a price target of Rs 820. The company remains confident in delivering double-digit revenue growth for the full year and sustaining margin stability. 

According to the brokerage, strategic initiatives anchor this growth; the New  Businesses (including Ginger and Qmin) are accelerating and are expected to grow from 25%.

Financially, the company intends to maintain its disciplined capital allocation, guiding for an annual Capex of approximately Rs 1,000 crore to be funded entirely through internal accruals.

"With a robust pipeline of 30,200 keys and strategic entries into high-margin segments like integrated wellness and luxury safaris, IHCL is positioned to double its consolidated revenue and reach a portfolio of 700 plus hotels by 2030," said Axis Direct. 

Nuvama has kept its price target unchanged at Rs 636 on the Tata Group. 

"Factoring in the weak showing, we are adjusting FY26E/27E revenue/EBITDA by 0.2%/-2.3% and 1%/-1%, respectively. We roll forward valuation to TTM Dec-28E, yielding an unchanged TP of INR636; maintain ‘REDUCE’," said  the domestic brokerage. 

Global brokerage Jefferies has assigned a price target of Rs 900 on the Tata Group stock. 

In Q3 of this fiscal, the hospitality major reported a 50 per cent year-on-year profit to Rs 954.24 crore for the third quarter ended December 31, 2025 compared to Rs 632.53 crore in the corresponding quarter last year.

About the Company

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.