Buy Indian Hotels Company, target price Rs 180: Motilal Oswal

Motilal Oswal has buy call on Indian Hotels Company with a target price of Rs 180. The current market price of Indian Hotels Company Ltd. is Rs 152.45. Time period given by analyst is one year when Indian Hotels Company Ltd. price can reach defined target.

Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 18118.35 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 626.47 Crore, up 1.94 % from last quarter Total Income of Rs 614.53 Crore and down -43.10 % from last year same quarter Total Income of Rs 1101.02 Crore. Company reported net profit after tax of Rs -89.92 Crore in latest quarter.

Investment Rationale
The company is in the right direction in growing its EBITDA as new revenue generating avenues are having a higher EBITDA margin, and this is done without deploying capital or with very minimal capital, which bodes well for RoCE. The brokerage values the stock at 19x Jun’23E EV/EBITDA and arrive at a SoTP-based TP of INR 180.

Promoter/FII Holdings
Promoters held 40.8 per cent stake in the company as of March 31, 2021, while FIIs held 12.3 per cent, DIIs 29.2 per cent and public and others 17.8 per cent.