Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strong expansion plans and robust domestic demand.
Basis of our Recommendation
Indian Hotels Company Ltd (IHCL) is positioned for robust growth driven by a strong expansion pipeline, with approximately 31,300 keys in development and a focus on capital-light strategies. The company is benefiting from healthy domestic demand and pricing power, despite facing geopolitical risks and potential margin pressures. The long-term outlook for the travel and tourism sector in India remains positive, supported by economic growth and undersupply in the market.
Why We Like This Stock
- Strong expansion pipeline with 31,300 keys planned
- Healthy domestic demand driving revenue growth
- Focus on capital-light expansion and high-margin fee-based businesses
Things To Watch Out For
- Geopolitical disruptions and rising fuel prices pose risks
- Potential margin pressures due to external challenges
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,769 | 8,335 | 9,689 | 11,009 | 12,385 |
| Profit Before Tax (Cr.) | 1,642 | 2,233 | 2,650 | 3,193 | 3,713 |
| PBT Margin | 24.3% | 26.8% | 27.4% | 29.0% | 30.0% |
| Net Profit (Cr.) | 1,333 | 1,778 | 2,113 | 2,284 | 2,655 |
| EPS | 8.9 | 11.6 | 13.7 | 16.0 | 18.7 |
Company Overview
Show Company Profile
The Indian Hotels Company Limited, together with its subsidiaries, owns, operates, and manages hotels, palaces and resorts in India and internationally. It operates through two segments: Hotel Services and Air and Institutional Catering. The company operates hotels under the Taj, Claridges Collection, SeleQtions, Atmanan, Brij, Tajsats, GATEWAY, Vivanta, Ginger, Tree of Life, amã Stays & Trails, Qmin, and Taj Sats brand names. It also provides trails, stays, restaurants, bars, clubs, spas, salons, food and beverages, and boutique services. The Indian Hotels Company Limited was founded in 1868 and is headquartered in Mumbai, India.