ICICI Direct has given Buy recommendation for Oriental Hotels recommended buy rating on the stock with a target price of Rs 73 in its research rep with a target price of Rs. 73 in its research report issued on Jan 18, 2022
ICICI Direct’s research report on Oriental Hotels
Oriental Hotel (OHL) operates in South India with Indian Hotels Company (IHCL) being one of the promoter entities. The company owns and operates seven hotels with ~825 rooms across business & leisure locations in the south. It derives majority of revenues from two of its properties in Chennai, 1) Taj Coromandel and 2) Taj – Fisherman’s Cove. Tata Group companies hold ~39.1% stake in OHL while the company is an associate of IHCL (28.6% stake). Apart from the ownership, the company has a strong operational and financial linkage with IHCL.
We remain positive on the company and maintain our BUY rating . We value the stock at Rs 73 i.e. 30x FY23E EV/EBITDA (vs. earlier TP of Rs 55/share).