Investors See An Upside Potential After Indian Hotels Q4 Results

The Indian Hotels Company Limited, an Indian hospitality company under the umbrella of the Tata Group, oversees a diverse portfolio of properties including hotels, resorts, jungle safaris, in-flight catering services etc. 

Following its Q4 results, Indian Hotels witnessed a nearly 5% decline in its share price, settling at Rs.581. The company posted a notable 27% increase in consolidated net profit to Rs.418 crore for the quarter ending in March. In Q1FY24, the company possessed approximately 191 hotels, offering a combined inventory of around 22,000 rooms. Additionally, it has plans for approximately 79 new hotels, which will contribute to the expansion of its Taj, Vivanta, and Ginger portfolios. Positioned as the leading hotel entity in India, it surpasses competitors such as Marriott, Radisson, ITC, and other major players in the industry. During the previous fiscal year, the company inaugurated 16 new hotels, and it aims to achieve a target of around 300 hotels by 2025. In Q1FY24 alone, the company successfully launched 5 new hotels.

Indian Hotels Q4 Results

The Top Line increased by 17.22% to Rs.1905.34 crores on YoY Basis and declined by around 3% on a QoQ Basis, On the bottom line frontiers, the Net Profit for the company increased by 27% on a YoY Basis to Rs.418 crores but the same Net Profit has fallen by 7.5% on QoQ Basis. The Earnings per share for the Q4 FY 2023-24 stood at Rs.2.93.

Brokerage Updates on Indian Hotels:

Though the share price of Indian Hotels has fallen after the results, several brokerages have still maintained and given “Buy” Calls for the stock. Motilal Oswal has said that the business growth was driven by factors like better occupancy and ARR. The firm has given a target price of Rs.680 a piece. While Nuvama has raised its target price to Rs. 578 from Rs.476 earlier and has retained its rating of Hold.

On the other hand, brokerage Prabhudas Lilladher has said that the company has reported below-estimated results, However, they do not have any rating on the stock of Indian Hotels.

Stock Performance

The stock has outperformed in 2024 so far, with stock rallying over 30% in 2024 alone against the benchmark index Nifty50 rising by 3.5%, The stock has also given attractive returns of 67% in the last year. The stock currently trades at  Rs.568 a piece as of 26th April.

Conclusion

The stock has reported a decline of around 7% after reporting below-estimated Q4 results, But the majority of analysts still have maintained their ratings on the stock to perform well in the future with increased revenue growth ahead. The stock is down by -1.6% today and is trading at Rs.568 a piece on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.