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INDHOTEL Price Target Potential
| Brokerage | Target | Potential |
|---|---|---|
| Sharekhan | 286 | -11.10% |
| Nirmal Bang | 284 | -11.88% |
| Motilal Oswal | 258 | -23.16% |
INDHOTEL Ratings
Long term INDHOTEL rating by FrontPage users
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INDHOTEL share price target reports by brokerages below. See what is analyst's view on INDHOTEL share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
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INDHOTEL Share Price Target
INDHOTEL Share Price Target - Broker Reports - 2022
Sharekhan
Price @ Call: 241
29-Mar-22
Target: 286
BUY
Nirmal Bang
Price @ Call: 218
3-Feb-22
Target: 284
BUY
Motilal Oswal
Price @ Call: 208
19-Jan-22
Target: 258
BUY
INDHOTEL Share Price Target - Broker Reports - 2021
Nirmal Bang
Price @ Call: 207
24-Nov-21
Target: 294
BUY
Motilal Oswal
Price @ Call: 214
21-Oct-21
Target: 268
BUY
ICICIdirect.com
Price @ Call: 206
22-Oct-21
Target: 250
BUY
Nirmal Bang
Price @ Call: 213
22-Oct-21
Target: 294
BUY
ICICIdirect.com
Price @ Call: 207
11-Oct-21
Target: 240
BUY
Sharekhan
Price @ Call: 184
1-Oct-21
Target: 215
BUY
AnandRathi
Price @ Call: 148
9-Jul-21
Target: 175
BUY
Motilal Oswal
Price @ Call: 142.6
10-Aug-21
Target: 183
BUY
Nirmal Bang
Price @ Call: 149.75
8-Jul-21
Target: 192
BUY
AnandRathi
Price @ Call: 104.7
12-Apr-21
Target: 130
BUY
Nirmal Bang
Price @ Call: 127.15
8-Mar-21
Target: 164
BUY
INDHOTEL Share Price Target - Broker Reports - 2020
Nirmal Bang
Price @ Call: 96.5
5-Nov-20
Target: 116
BUY
AnandRathi
Price @ Call: 72.17
7-Apr-20
Target: 100
BUY
As ~65-70% of the total branded hotel rooms in India primarily exist because of corporate travel in India, we reckon the situation is likely to be grim over the next 2-3 months. With the "no-travel" policy and companies adopting "work from home", we expect the impact of the virus to begin waning by Jun-Jul, and business to pick up in H2 FY21. We also assume that, as the last few months of 2020 roll in, inbound travel is likely to be a fraction of what India gets in typical years. Considering the situation and its impact on hospitality, we cut our FY21e/FY22e EBITDA for Indian Hotels by 71.7%/39.7% and retain our Buy rating on the stock, with a lower target price of `100, from `180 (sum-of-parts valuation, see Page 4). Also, IHCL is in a comfortable position regarding debt, given its limited refinancing needs and strong promoter backing. Key assumptions taken for FY21 (standalone properties: 40% occupancy with 12% y/y cut in ARR; US and UK properties: 30% occupancy with 12% y/y cut in ARR).
Nirmal Bang
Price @ Call: 75.52
8-Apr-20
Target: 127
BUY
Yet another headwind: Coronavirus We expect a sharp fall in the earnings of hospitality companies because of the outbreak of corona virus. The hospitality sector was already facing weaker than expected growth because of slowdown in the economy and weak demand from corporate and MICE segments. The outbreak of corona virus has affected domestic and international travel, acting as yet another headwind for the hospitality sector, which was on the verge of a cyclical upcycle. Our interactions with the industry experts indicate that the ARR and occupancy for January and February 2020 saw a considerable growth on a YoY basis. However, post the implementation of precautionary measures against corona virus like cancellation of tourist visas, imposition of section 144 in certain areas and ultimately announcing a nationwide lockdown from 25th March 2020, the ARR declined sharply and occupancies for March 2020 fell to as low as 5%-10%. The MICE and corporate events were already witnessing subdued demand in the earlier quarters of FY20. The demand was further affected due to cancellations
AnandRathi
Price @ Call: 139.53
27-Feb-20
Target: 180
BUY
At Indian Hotels’ capital-market day, management was confident of a RevPAR performance in the next few quarters ahead of the industry despite soft demand which has persisted since the beginning of 2019. The company continues to with its revenue-enhancing/cost-saving steps and is on track to achieve its margin-expansion targets (8%) through 2022. Another key aspect of its strategy that came through was growth with balance-sheet discipline via (1) asset light growth, (2) renovations with a return-on-capital approach, (3) ~`2bn a year of non- core-asset sales and (4) leveraging alternative funding platforms. We maintain our Buy rating, with an unchanged target of Rs 180, at a sum-of- parts valuation
Nirmal Bang
Price @ Call: 139.48
25-Feb-20
Target: 174
BUY
Resolution of Sea Rock hotel clearly visible; will help in improvement of return ratios. We maintain Buy with Target Price of Rs174. Our TP of Rs174 for IHCL is based on 18x Sep FY22E EV/EBITDA, which is supported by EBITDA CAGR of 16% over FY19-FY22E.
Nirmal Bang
Price @ Call: 139.96
1-Feb-20
Target: 174
BUY
Indian Hotels (IHCL) revenue grew by 4% YoY to Rs13,727mn in 3QFY20, which was primarily driven by: (1) 5.2% YoY growth in room rental revenue (2) F&B growth of 1.5% YoY. The Room revenue growth was driven by: (1) 5.6% YoY growth on a same store basis (SSG) in domestic Revpar - better than industry growth of 5.5% YoY (2) Addition of 855 rooms YoY. Reported EBITDA margin at 31% expanded by 566bps YoY because of: (1) Revenue increasing by 4% YoY (2) Cost decreasing by 4%. On a Pre Ind AS 116 basis, EBITDA margin stood at 27.7%, expanding by 235bps YoY because of: (1) Revenue increasing by 4% YoY. (2) Cost increasing by 2% pre implementation of Ind AS 116. The profit growth was driven by: (1) RevPar growth of 5.6% YoY (2) Addition of 855 rooms YoY (3) Continued focus on cost optimization (4) Focus on growth avenues of profitability like non core assets sale, sale of club membership in Chambers etc. We have maintained our Buy rating on the stock with a target price (TP) of Rs174. We have valued the company at 18x Sep FY22E EV/EBITDA.
INDHOTEL Share Price Target - Broker Reports - 2019
Motilal Oswal
Price @ Call: 147.41
11-Nov-19
Target: 172
BUY
We maintain our estimates and expect revenue/ EBITDA CAGR of 8%/30% in FY20/21. We value the stock at 17x FY21 EV/EBITDA and arrive at SOTP-based TP of INR172, implying an upside of 17%. Maintain Buy.
Nirmal Bang
Price @ Call: 154.22
13-Nov-19
Target: 171
BUY
IHCL’s strategy as enunciated in ‘Aspirations 2022’ to grow EBITDA by 8% to 25% by FY22 seems to be on track. It is being helped by strong focus on maintaining a strong balance sheet with decline in net debt to equity ratio from 0.5x in 2QFY19 to 0.43x in 2QFY20 (both pre IND AS 116). We also note that post tax operational cash flow increased by 26% YoY.We have maintained our Buy rating on the stock with a target price (TP) of Rs171. We have valued the company at 21x Sep FY22E EV/EBITDA.
Nirmal Bang
Price @ Call: 132.85
9-Sep-19
Target: 168
BUY
We have retained our Buy rating on the stock with a revised target price (TP) of Rs168 (Rs206 earlier). We have rolled over from FY21E to midpoint FY22E and valued the company at 21x mid year FY22E EV/EBITDA. The downward revision of TP is attributable to downward revision of RevPar estimates.
Nirmal Bang
Price @ Call: 140.12
6-Aug-19
Target: 206
BUY
EBITDA margin improves; Focus on management contracts
Indian Hotels Company or IHCL has reported revenue of Rs10,200mn for 1QFY20, which is up 4% YoY. The growth was weak due to the impact of elections in April 2019 and May 2019.EBITDA grew by 57% YoY due to: (1) Cost optimization and (2) Impact of Ind AS 116.Adjusted net profit declined by 63% YoY due to: (1) Impact of Ind AS116 (2) Lower deferred tax credit YoY (3) Loss from the share in associate attributable to write-off of amount due from Jet Airways to Taj Sats compared to a gain in 1QFY19.We have maintained our Buy rating on the stock with a target price (TP) of Rs206. We have valued the company at 21x FY21E EV/EBITDA.
Indian Hotels Company or IHCL has reported revenue of Rs10,200mn for 1QFY20, which is up 4% YoY. The growth was weak due to the impact of elections in April 2019 and May 2019.EBITDA grew by 57% YoY due to: (1) Cost optimization and (2) Impact of Ind AS 116.Adjusted net profit declined by 63% YoY due to: (1) Impact of Ind AS116 (2) Lower deferred tax credit YoY (3) Loss from the share in associate attributable to write-off of amount due from Jet Airways to Taj Sats compared to a gain in 1QFY19.We have maintained our Buy rating on the stock with a target price (TP) of Rs206. We have valued the company at 21x FY21E EV/EBITDA.
Motilal Oswal
Price @ Call: 134.05
5-Aug-19
Target: 178
BUY
Notable contribution by subsidiaries
Factoring in the impact of Ind-AS 116 into our model, we raise our FY20/21 EBITDA estimate by 18%/14%, but cut the PBT estimate by 3%/4%. We value the stock at 17x FY21E EV/EBITDA. On an SOTP basis, we arrive at a TP of INR178 (upside of 32%). Maintain Buy.
Factoring in the impact of Ind-AS 116 into our model, we raise our FY20/21 EBITDA estimate by 18%/14%, but cut the PBT estimate by 3%/4%. We value the stock at 17x FY21E EV/EBITDA. On an SOTP basis, we arrive at a TP of INR178 (upside of 32%). Maintain Buy.
ICICIdirect.com
Price @ Call: 140.8
7-Aug-19
Target: 165
BUY
Despite a weak April and May, the company reported ~4% growth supported by a strong June. With the expected tailwind in the sector, IHCL being the leader, should be a key beneficiary of the turnaround. Additionally focus on cost rationalisation and an asset light focus are strong positive for the company. Considering the above, we maintain our positive stance on the company and reiterate BUY on IHCL with a target price of Rs165.
Motilal Oswal
Price @ Call: 148.2
18-Jun-19
Target: 186
BUY
We maintain our estimates of a CAGR of 9% in revenue (to INR53.9b) and 25% in EBITDA (to INR12.9b) over FY19-21. We believe that IHIN is well placed to deliver on its ‘Aspiration 2022’ vision, and its other strategic initiatives like rebranding of Ginger, monetizing existing landbank, partnership with GIC and reducing costs are also on track. More importantly, the underlying thesis of favorable demand-supply- led growth in the Indian hospitality industry also remains intact. We value the stock at 20x Dec’20E EV/EBITDA (on a one-year forward EV/EBITDA basis, the stock has traded at a 10-year average of 21.4x). On an SOTP (consol. and JV & associate) basis, we arrive at a target price of INR186. Maintain Buy.
ICICIdirect.com
Price @ Call: 152.15
7-May-19
Target: 175
BUY
With the expected tailwinds in the hospitality sector as a whole fuelled by steady demand, lower supply addition and higher discretionary spends, IHCL being one of the leaders in the sector should be a key beneficiary of the turnaround. Additionally, focus on cost rationalisation is expected to drive margins further. Considering the above, we maintain our positive outlook on the sector and reiterate BUY on IHCL with an upgraded target price of Rs 175.
HDFC Securities
Price @ Call: 153.69
3-May-19
Target: 176
BUY
IHCL’s 4QFY19 was in-line. The strong standalone show (primarily domestic) was off-set by a weak performance of subsidiaries (mostly international). Reiterate BUY with TP of Rs 176 (20x FY21E EV/e).
Nirmal Bang
Price @ Call: 157.35
9-Apr-19
Target: 195
BUY
Our target price of Rs195 on IHCL is based on 21x FY21E EV/EBITDA, which is supported by EBITDA CAGR of 23% over FY18-FY21E. Our valuation is driven by the cyclical upswing in the hotel sector with improvement in RevPar, and also increase in the number of rooms driving higher revenues. Higher revenues, together with a relatively muted rise in costs and high operational leverage, are expected to lead to strong growth in EBITDA. Our optimism is further supported by a healthy balance sheet and negative working capital.
Nirmal Bang
Price @ Call: 150.1
27-Mar-19
Target: 195
BUY
Our target price of Rs195 is based on 21x FY21E EV/EBITDA, which is supported by EBITDA CAGR of 23% over FY18-FY21E. Our valuation is driven by the cyclical upswing in the hotel sector with improvement in RevPar, and increase in the number of rooms driving higher revenues. Higher revenues, together with a relatively muted increase in costs and high operational leverage, are expected to lead to strong growth in EBITDA. Our optimism is further supported by a healthy balance sheet and negative working capital.
Motilal Oswal
Price @ Call: 136.7
20-Feb-19
Target: 151
BUY
We maintain our estimates – revenue/EBITDA CAGR (FY18-21) of 10%/24% to INR53.9b/INR12.9b. In our view, IH is well on track to achieve its ‘Aspiration 2022’ goal and other strategic initiatives like rebranding of Ginger/monetizing the existing landbank. Moreover, IH is witnessing ARR growth of 8% in the FIT segment and has taken an ARR hike of 8.5% in the corporate segment in Jan’19 (in line with the view in our initiation report). Thus, the underlying thesis of favorable demand-supply-led growth in the Indian hospitality industry remains intact. We value the stock at 20x Dec’20E EV/EBITDA (on a one-year forward EV/EBITDA basis, the stock has traded at a 10-year average of 21.4x). On an SOTP (consol. and JV & associate) basis, we arrive at a target price of INR189, implying an upside of 38%. Maintain Buy.
HDFC Securities
Price @ Call: 141.15
14-Feb-19
Target: 168
BUY
ICICIdirect.com
Price @ Call: 141.15
14-Feb-19
Target: 165
BUY
The domestic hotel industry is expected to witness robust growth in coming years led by higher occupancy, limited capacity addition and rise in spending by domestic travellers. Indian Hotels, one of the largest domestic hotel players, will be a key beneficiary of a turnaround in the industry. The company plans to add 15-20 new hotels annually through management contracts that will further boost topline. In addition, cost rationalisation and RevPAR growth is expected to drive margins over FY18-20E. Hence, we have a positive view on the stock and maintain BUY rating on the stock with a revised target price of | 165/share (i.e. valuing at EV/room of | 2.5 crore/room and 21x FY20E EV/EBITDA).
Motilal Oswal
Price @ Call: 136
13-Feb-19
Target: 189
BUY
IHIN has guided for rate hikes for corporate customers in 4QFY19. Thus, the underlying thesis of favorable demand-supply led growth in the Indian hospitality industry remains intact. We maintain our FY19/20/21 earnings estimates – CAGR (FY18-21) of 10% to INR53.9b in revenue and of 24% to INR12.9b in EBITDA. We value the stock at 20x Dec’20E EV/EBITDA (on a one-year forward EV/EBITDA basis, the stock has traded at a 10-year average of 21.4x). On an SOTP (consol. and JV & associate) basis, we arrive at a TP of INR189, implying an upside of 39%. Maintain Buy.
INDHOTEL Share Price Target - Broker Reports - 2018
HDFC Securities
Price @ Call: 134.12
16-Nov-18
Target: 282
BUY
HDFC Securities
Price @ Call: 120.35
11-Oct-18
Target: 150
BUY
ICICIdirect.com
Price @ Call: 123.9
13-Aug-18
Target: 155
BUY
INDHOTEL Share Price Target - Broker Reports - 2017
ICICIdirect.com
Price @ Call: 119.65
22-Aug-17
Target: 130
HOLD
ICICIdirect.com
Price @ Call: 131
30-May-17
Target: 145
BUY
ICICIdirect.com
Price @ Call: 114
7-Feb-17
Target: 145
BUY
INDHOTEL Share Price Target - Broker Reports - 2016
ICICIdirect.com
Price @ Call: 113
8-Nov-16
Target: 145
BUY
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SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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