Indian Hotels shares climb 7% on Q3 results. Should you buy, sell or hold?

Shares of Tata Group-backed company Indian Hotels rallied 7% to Rs 321.55 in Wednesday's trade on BSE after the company reported a better-than-expected profit in the third quarter. The company reported a four-fold increase in consolidated net profit at Rs 403.56 crore in the third quarter ended December 2022.

It posted a consolidated net profit of Rs 95.96 crore in the year-ago period, the company said in a regulatory filing.
Indian Hotels' consolidated revenue from operations during the quarter under review stood at Rs 1,685.8 crore against Rs 1,111.22 crore in the corresponding period previous fiscal, whereas, total expenses were higher at Rs 1,248.62 crore in Q3FY23, up from Rs 1,014.23 crore a year ago.

In the last year, Indian Hotels' stock has risen by 44%. It has also surged around 19% in the last six months.
Should you buy, sell or hold BPCL stock? Here's what analysts say:

As per Trendlyne data, the highest target for the stock goes up to Rs 390, while the average target price estimate is Rs 348.5, an upside potential of 9% from the current market prices.

The consensus recommendation from 15 analysts for Indian Hotels is a buy. Out of the 15 analysts covering the stock, 11 analysts have strong buy and buy ratings, while three analysts have hold ratings, and the remaining one has a strong sell rating.

ICICI Securities
Following the Q3 results, domestic brokerage 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," it said.

Jefferies
Jefferies maintained its buy rating on Indian Hotels with a target price of Rs 380."We upgrade the FY23 Ebitda estimate by 8% to reflect Q3 beat and continuing strength in ARRs/RevPARs in the month of Jan 2023 also. Though, amid concerns around urban consumption slowdown, we just marginally tweak EBITDA for FY24/ FY25," it said.


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