scorecardresearch

Rakesh Jhunjhunwala stock Indian Hotels rises after Q1 profit jumps to Rs 170 crore; should you buy, hold or sell?

Rakesh Jhunjhunwala portfolio stock India Hotels Company (IHCL) jumped 1 per cent on Wednesday, after the the company reported a consolidated net profit of Rs 170 crore for the quarter ended June 2022

Rakesh Jhunjhunwala, Rakesh Jhunjhunwala portfolio, Rakesh Jhunjhunwala stock
Indian Hotels Co shares were trading at Rs 274, up 1.62% on NSE intraday.

Rakesh Jhunjhunwala portfolio stock India Hotels Company (IHCL) jumped 1 per cent on Wednesday, after the the company reported a consolidated net profit of Rs 170 crore for the quarter ended June 2022, mainly due to surge in demand as the occupancy and rates exceeded pre-COVID levels. IHCL’s revenue surged by 249.45 per cent to Rs 1,293 crore during the quarter under review, compared to Rs 370 crore in the year-ago period. The hospitality major reported its best first quarter in the company’s history. The company is expecting a double-digit revenue growth in the second quarter as well, said MD and CEO Puneet Chhatwal. So far this year, IHCL share price has rallied 47%, outrunning benchmark Nifty 50, and analysts see up to 18% more upside going forward. Indian Hotels Co shares were trading at Rs 274, up 1.62% on NSE intraday.

Also Read: Gold Price Today, 10 Aug 2022: Gold falls ahead of US inflation data, support on MCX at Rs 52100; buy on dips

Should you buy, hold or sell?

Motilal Oswal: Buy
Target price: Rs 320; Upside: 18%

According to analysts at Motilal Oswal, India Hotel Co’s asset-light model as well as new and reimagined revenue-generating avenues, with higher EBITDA margin, bodes well for an expansion in RoCE. “We expect the strong momentum to continue in FY23 and FY24, led by: an improvement in ARR and occupancy on account of favorable demand-supply dynamics; ongoing cost rationalization efforts; higher income from management contracts; and unlocking value by launching reimagined and new brands,” they said. The brokerage maintains buy call on the stock with a target price Rs 320 per share. It raised its FY23, FY24 EBITDA estimate by 22% and 11% respectively.

Edelweiss Securities: Buy
Target price: Rs 316; Upside:16.1%

Edelweiss Securities in its report noted that the Indian Hotels delivered a phenomenal quarter potentially its best ever Q1. The current trends have sustained in Jul-22 and with the revival of international arrivals, there is visibility of the strong traction sustaining. The brokerage thus increased its FY23, FY24 EBITDA by 14% and 10% respectively baking-in higher RevPars. The brokerage maintains ‘buy’ rating with a DCF-based target price of Rs 316, up from Rs 274 earlier.

Also Read: Bharti Airtel share price soars 2% on sixfold jump in Q1FY23 net profit; should you buy, sell or hold?

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.