Shutterstock.comEdelweiss has hold call on Indian Hotels Company with a target price of Rs 118. The current market price of Indian Hotels Company Ltd. is Rs 120.2.
Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 14604.09 Crore) operating in Tourism & Hospitality sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 559.86 Crore, up 118.12 % from last quarter Sales of Rs 256.67 Crore and down -59.22 % from last year same quarter Sales of Rs 1372.72 Crore Company reported net profit after tax of Rs -117.66 Crore in latest quarter.
Investment Rationale
Factoring in reduced uncertainty from covid-19 (via lower cost of capital) and rollover to Mar-22E, the brokerage is raising the TP to INR 117 (from INR 92). The stock is trading at 17x FY23E EV/EBITDA (long-term average of 20x). Given the pushed-out recovery, it finds risk-reward unattractive.
Promoter/FII Holdings
Promoters held 40.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 10.5 per cent, DIIs 31.5 per cent and public and others 17.3 per cent.
Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 14604.09 Crore) operating in Tourism & Hospitality sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 559.86 Crore, up 118.12 % from last quarter Sales of Rs 256.67 Crore and down -59.22 % from last year same quarter Sales of Rs 1372.72 Crore Company reported net profit after tax of Rs -117.66 Crore in latest quarter.
Investment Rationale
Factoring in reduced uncertainty from covid-19 (via lower cost of capital) and rollover to Mar-22E, the brokerage is raising the TP to INR 117 (from INR 92). The stock is trading at 17x FY23E EV/EBITDA (long-term average of 20x). Given the pushed-out recovery, it finds risk-reward unattractive.
Promoter/FII Holdings
Promoters held 40.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 10.5 per cent, DIIs 31.5 per cent and public and others 17.3 per cent.
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