Large cap Tata stock that can yield high yield, targets 25% revenue, project expansions in pipeline

Indian hotels: target price and current market price

The current market price (CMP) for Indian hotels is Rs. 222. Emkay Global has estimated a target price for the stock at Rs. 260. The stock is expected to return 17.11% in 1 year. The company is a large cap company with a market capitalization of Rs. 31,966 crores.

Stock market outlook
Current market price (CMP) Rs.222
Target price Rs.260
Potential return over 1 year 17.11%
Stock price at 52-week high Rs.268.95
52 week low price Rs. 121.21

According to the report, in December 2021, the company raised Rs. 20 billion via a rights issue and another Rs. 20 billion via a QIP in March 2022. However, after that, it turned net cash, from net debt of Rs. 31 billion in FY21.

According to the company profile, they ticked an after-tax profit of Rs. 354 crore, and its consolidated EBITDA margin stood at Rs. 4,596 crore, with an EBITDA margin of 24%.

Benefits and Risks of Stock: Anand Rathi

Benefits and Risks of Stock: Anand Rathi

Mentioning the potential for the stock, Anand Rathi said, “In its capital market day, IHCL announced Ahvaan 2025, under which it aims to build a cohort of 300 hotels (in FY22 , it had 20,581 rooms in 175 operating hotels), recording 33% EBITDA margins with a 35% share of EBITDA from new business and management fees by FY26. ‘FY22, the hotel company owned or managed approximately 20,581 rooms. Management contracts increased from approximately 25% of rooms in FY18 to 36% in FY22, and the Company has the intention to increase this figure to 50% over the next few years On the management contract side, the company has 5,550 rooms in the pipeline, which should be operational in the next 3 to 5 years. revenue of Rs. 4 billion in management fees by FY26, with a transfer of 70% to the EBITDA. We maintain our positive stance on the hotelier and expect it to outperform the others, thanks to its dominance in the Indian hotel sector, exceptional brand equity and well-diversified portfolio across all hotel segments. activity and prices.”

However, on the key risk, the brokerage firm mentioned a downturn in the economy which could reduce demands.

About the company: IHCL

About the company: IHCL

The Indian Hotels Company Limited is South Asia’s largest hospitality-focused company of Indian origin, relentlessly redefining opportunities for the best interests of all its stakeholders. It is a Tata group company. With businesses ranging from iconic luxury to upscale and budget stopovers to in-flight catering; IHCL’s pioneering leadership is backed by a rich 115-year heritage. IHCL’s emerging initiatives in urban leisure, service retail and concept travel. IHCL has vivid brands like Taj, SeleQtions, Vivanta, The Gateway, Ginger, Expressions and TajSATS.

They are present in more than 100 sites on 4 continents. They have unique F&B concepts, with over 400 Restaurants and Bars. In India, they have 175 hotels, in over 80 locations, in FY22.

Disclaimer

Disclaimer

The action above was taken from Anand Rathi’s brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

Sallie R. Loera