ICICI Securities Upgrades Indian Hotels to ‘Buy’; Shares Rise Over 7%
Mumbai, India
– ICICI Securities, a leading Indian brokerage firm, has upgraded its rating on Indian Hotels Company (IHCL) to “Buy” from “Hold,” citing the company’s strong recovery from the COVID-19 pandemic. In a research note released on Monday, ICICI Securities analysts said that IHCL is well-positioned to benefit from the expected recovery in the domestic travel market. The brokerage firm noted that the company’s focus on premium and luxury hotels, along with its strong brand presence, would drive growth in the coming quarters. ICICI Securities also highlighted IHCL’s efforts to expand its presence in new markets and its focus on sustainability as positive factors. The brokerage firm expects the company’s revenue to grow by 15% in FY24 and by 18% in FY25, driven by growth in both its domestic and international businesses. The upgrade by ICICI Securities sent IHCL shares soaring on Monday, with the stock rising by over 7% to touch an intraday high of Rs. 317.45 on the NSE. As of market close, the shares were trading at Rs. 312.15, up 6.57% from the previous close. Analysts at other brokerage firms have also expressed optimism about IHCL’s prospects. Motilal Oswal Securities recently maintained its “Buy” rating on the stock, with a target price of Rs. 350. The brokerage firm said that IHCL is a “direct play on the recovery in Indian travel and tourism.” Nomura has also upgraded its rating on IHCL to “Buy,” citing the company’s strong balance sheet, improved profitability, and positive recent performance. The brokerage firm has set a target price of Rs. 330 for the stock. The positive sentiment around IHCL is supported by the broader recovery in the Indian hospitality sector. The sector has been hit hard by the COVID-19 pandemic, but with travel restrictions easing and demand for leisure and business travel increasing, the outlook for the industry is improving. Analysts expect IHCL to continue to benefit from the recovery in the sector and its strong position in the luxury segment. The company’s focus on sustainability and its efforts to expand into new markets are also seen as long-term growth drivers for the business.
ICICI Securities Upgrades Indian Hotels to ‘Buy’; Shares Rise Over 7%
Mumbai, India:
ICICI Securities has upgraded its rating on Indian Hotels Company Limited (IHCL) to “buy” from “hold”, citing the company’s strong performance and growth prospects. Following the upgrade, shares of Indian Hotels jumped more than 7% in early trade on the Bombay Stock Exchange (BSE). In a research note, ICICI Securities analysts cited several factors for their positive outlook on the company: *
Strong financial performance:
Indian Hotels reported a strong set of quarterly results, with revenue and profit growing significantly. *
Recovery in domestic tourism:
Domestic tourism has rebounded strongly post-pandemic, boosting occupancy rates and revenue for the company’s hotels. *
Expansion plans:
Indian Hotels is actively expanding its portfolio through new hotel openings and acquisitions, which is expected to drive future growth. *
Focus on sustainability:
The company’s emphasis on sustainability initiatives is aligning with global trends and attracting environmentally conscious travelers. ICICI Securities has set a target price of INR 420 per share for Indian Hotels, implying an upside potential of around 33% from the current market price. The upgrade from ICICI Securities follows a string of positive news for Indian Hotels. The company recently announced a partnership with Etihad Airways to provide loyalty benefits to members of both programs. Additionally, the government of India has approved a proposal to develop a new Taj hotel in Varanasi, further expanding the company’s presence in popular tourist destinations. Analysts believe that Indian Hotels is well-positioned to benefit from the ongoing recovery in the tourism industry. The company’s strong brand, extensive network of hotels, and focus on innovation are expected to drive long-term growth.