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    Budget 2023: Hotel stocks rally up to 8% on FM's tourism promotion push

    Synopsis

    Shares of EIH (Oberoi group hotels) surged over 7.7% to Rs 175, while shares of Indian Hotels rose 7.6% to Rs 323.4 on BSE. HLV and Mahindra Holidays also gained up to 5%.

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    Hotels stock rallied up to 8% after the Union Finance Minister Nirmala Sitharaman in the Union Budget said that the promotion of tourism will be taken up on mission mode.

    "Promotion of tourism will be taken up on mission mode with the active participation of states, the convergence of government programs and public-private partnerships," said Finance Minister Nirmala Sitharaman during the Budget 2023-24 presentation.

    Shares of EIH (Oberoi group hotels) surged over 7.7% to Rs 175, while shares of Indian Hotels rose 7.6% to Rs 323.4 on BSE. HLV and Mahindra Holidays also gained up to 5%.

    Domestic brokerage firm ICICI Securities upgraded its rating on Indian Hotels to Buy from Add with a revised SoTP-based target price of Rs 399/share (earlier Rs 366).

    "With demand momentum sustaining in Q4FY23 as well with strong leisure demand and increased business travel, we raise our FY23-25E consolidated revenue estimates by 7% and our FY23/24/25E EBITDA estimates by 14/17/9% respectively as operating leverage plays out," ICICI Securities said.

    Jefferies maintained its buy rating on Indian Hotels with a target price of Rs 380.

    "We upgrade FY23 Ebitda estimate by 8% to reflect 3Q beat and continuing strength in ARRs/RevPARs in the month of Jan-23 also. Though, amid concerns around urban consumption slowdown, we just marginally tweak EBITDA for FY24/ FY25," Jefferies said.

    (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)






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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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