Sharekhan has given Buy recommendation for Indian Hotels Company with a target price of Rs. 215 in its research report issued on Oct 01, 2021
Sharekhan’s research report on Indian Hotels Company
Rapid vaccinations lifted domestic leisure travel, helping occupancies to scale up to close to 60% in July 2021 and further improve in August. IHCL’s standalone average occupancies are expected to be at 60% in Q2FY2022 versus 32.3% in Q2FY2021 on strong demand for domestic leisure travel. International properties (in the UK and US) are recovering as these markets open up. Hotel occupancies in the US are above 60%, while London hotels occupancies are trending at 55-56%.
Outlook
We maintain a Buy on Indian Hotels Company Ltd (IHCL) with a revised price target of Rs. 215; stock trades at 29x/22x its FY2023E/24E EV/EBIDTA.