Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Indian Hotels; target of Rs 165: ICICI Direct

ICICI Direct is bullish on Indian Hotels has recommended buy rating on the stock with a target price of Rs 165 in its research report dated August 07, 2019.

August 08, 2019 / 02:59 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Indian Hotels

Indian Hotels reported a weak set of Q1FY20 numbers. While domestic network hotels witnessed 4.2% growth YoY, the international business continued its turnaround growing 8.2% YoY. Overall revenues increased 4.1% YoY to Rs 1020 crore (vs. I-direct estimate of Rs 1065 crore) during the quarter. EBITDA on a reported basis was at Rs 173 crore while for a like-to-like comparison, EBITDA was at ~Rs 128 crore (vs. I-direct estimate of Rs 131 crore). Adjusted EBITDA margins for the quarter came in at 12.5%, improving ~120 bps YoY (broadly in line with I-direct estimate of 12.3%). PAT for the quarter was at Rs 5.7 crore. However, the same is also not comparable. On a comparable basis, PAT was at Rs 14 crore for Q1FY20, below I-direct estimates of Rs 22.9 crore on account of higher tax provisions during the quarter.

Outlook

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 Rs 165.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 8, 2019 02:59 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347