Buy Indian Hotels Company, target price Rs 390: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Indian Hotels Company with a target price of Rs 390. The current market price of Indian Hotels Company is Rs 321.45 Time period given by analyst is year when Indian Hotels Company price can reach defined target.

Indian Hotels Company, incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 45836.30 Crore) operating in Tourism & Hospitality sector.

Indian Hotels Company key Products/Revenue Segments include Income from Rooms, Restaurants & Other Services for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1257.57 Crore, down -2.75 % from last quarter Total Income of Rs 1293.19 Crore and up 67.17 % from last year same quarter Total Income of Rs 752.28 Crore. Company has reported net profit after tax of Rs 124.38 Crore in latest quarter.

The company’s top management includes Mr.N Chandrasekaran, Mr.Puneet Chhatwal, Mr.Venu Srinivasan, Mr.Mehernosh Kapadia, Ms.Anupam Narayan, Mr.Nasser Munjee, Ms.Hema Ravichandar, Mr.Venkataramanan Anantharaman. Company has B S R & Co. LLP as its auditors. As on 31-03-2022, the company has a total of 142 Crore shares outstanding.

Investment Rationale
The new and re-imagined businesses are expected to provide incremental boost to IH’s growth trajectory with their margin and ROCE accretive business model. Overall, the new and re-imagined business revenue is expected to register a CAGR of 50% over FY22-25E.

Promoter/FII Holdings
Promoters held 38.19 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.03 per cent, DIIs 28.51 per cent.