Indian Hotels stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has risen 18 percent in 2023 and gained 57.66% in a year. Shares of Indian Hotels hit record high amid a rally in broader market today. Indian Hotels shares gained 2.08 per cent per cent to hit a high of Rs 377.8 against the previous close of Rs 370.10 on BSE. The stock has climbed 11% in the last six sessions. Total 1.35 lakh shares of the firm changed hands amounting to a turnover of Rs 5.05 crore on BSE. Market cap of the firm rose to Rs 53,250 crore on BSE. The stock hit a 52-week low of Rs 207.25 on June 20, 2022.
In terms of technicals, the relative strength index (RSI) of the stock stands at 82.9, signaling it's strongly overbought. Indian Hotels shares have a beta of 0.9, indicating low volatility in a year. Indian Hotels stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has risen 18 percent in 2023 and gained 57.66% in a year.
The firm reported a 86.39% rise in sales to Rs 1625.43 crore in the March 2023 quarter against Rs 872.08 crore in the March 2022 quarter. Net profit zoomed 342.47% to Rs 328.27 crore in Q4 against Rs 74.19 crore in the March 2022 quarter. EBITDA rose 236.83% to Rs 535.49 crore in Q4 against Rs 159 crore in the March quarter of 2022.
On an annual basis, net profit zoomed to Rs 1002 crore for the fiscal ended March 2023 against a loss of Rs 247.72 crore for the fiscal ended March 2022. For the fiscal ended 2021, net loss stood at Rs 720.11 crore.
Sales climbed 90.10% to Rs 5809.91 crore in the March 2023 fiscal against Rs 3056.22 crore for the fiscal ended March 2022. For the fiscal ended 2021, sales stood at Rs 1575.16 crore.
After the earnings, Motilal Oswal assigned a target of Rs 420 for the Indian Hotels stock.
“We expect the strong momentum to continue in FY24, led by: 1) a further improvement in occupancy due to multiple large global events such as G20 and ICC Cricket Men's World Cup in CY23; 2) an increase in ARR due to better demand, upgrades in hotels and corporate rate hikes; 3) higher income from management contracts; and 4) value unlocking by launching reimagined and new brands. Factoring in the 4QFY23 performance, we raise our FY24/FY25 EBITDA estimates by 5%/3%, aided by better-than-expected ARR, addition of new owned/leased and management hotels, and the normalization of inbound travel. Maintain BUY with an SoTP-based target price of Rs 420,” said the financial services firm.
Abhijeet from Tips2trade said, "Indian Hotels Q4FY23 results expectedly were great but QoQ operating margins saw a drop despite which the stock price continues to soar to its all time highs. Technically, Indian Hotels is overbought and investors should book profits at current levels and wait for a dip near support of Rs 300-309 to buy for better returns in the near term."
Brokerage Sharekhan has maintained a buy call on the stock with a revised target price of Rs. 425.
“A recovery in foreign tourist arrivals will further boost the growth in H2. International properties likely to recover to pre-covid level in FY2024 (currently at 90% of pre-COVID levels). EBITDA margins to cross 33% by FY2025. Asset light model to help in high free cash generation. Minimal investment for scaling up of new ventures. Return profile to improve substantially over the next three years. The stock trades at 19.0x/16.0x its FY2024E/25E EV/EBIDTA. We maintain our Buy recommendation on the stock,” the brokerage said.