Samhi Hotels
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Management at Samhi Hotels has expressed a confident outlook, driven by strong domestic demand and a strategic pivot towards higher-margin upscale assets. Despite facing near-term headwinds from geopolitical tensions and margin pressures, the company has maintained a solid occupancy rate of 79.3% and is focused on enhancing its product mix to capture higher revenue per key. Vista's financial outlook reflects stable revenue growth, supported by a robust pipeline of 1,660 rooms and a commitment to financial discipline, including a significant reduction in finance costs. The anticipated shift towards premium segments is expected to bolster long-term pricing power, aligning with Vista's forecast of a 16% expected upside. However, the company must navigate risks such as geopolitical instability and execution delays in its development pipeline. Overall, the hospitality sector's recovery, driven by domestic travel demand, provides a favorable backdrop, although caution is warranted given the potential for international travel disruptions. Key opportunities include the successful integration of new assets and the expansion of the RARE platform, while watchpoints include geopolitical risks and the impact of regulatory changes on operational efficiency
Why We Like This Stock
- Strong domestic travel demand is enhancing occupancy rates and revenue potential
- Strategic pivot towards higher-margin upscale assets is expected to improve long-term pricing power
- Successful integration of the RARE platform is anticipated to contribute significantly to EBITDA
Things To Watch Out For
- Geopolitical tensions are creating volatility in international travel and F&B spending
- Margin pressures are expected to persist due to increased costs and regulatory changes
- Delays in the development pipeline may expose the company to heightened competition
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 957 | 1,130 | 1,248 | 1,280 | 1,415 |
| Profit Before Tax (Cr.) | -171 | 80 | 160 | 171 | 202 |
| PBT Margin | -17.8% | 7.1% | 12.8% | 13.4% | 14.3% |
| Net Profit (Cr.) | -162 | 80 | 165 | 128 | 93 |
| Earnings Per Share | -7.3 | 3.6 | 4.5 | 3.5 | 4.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Investec | ▲ Buy | 208 | 16-Sep-2026 |
| Elara Capital | ▲ Buy | 213 | 10-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 201 | 06-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 05-Aug-2026 |
Company Overview
Show Company Profile
SAMHI Hotels Limited, a hotel ownership and asset management platform, operates as a hotel development and investment company in India. It operates hotels under the Hyatt Place, Hyatt Regency, Sheraton, Courtyard By Marriott, Renaissance Hotel, Four Points By Sheraton, Fairfield By Marriott, Holiday Inn Express, Trinity, and Caspia brand names. The company was incorporated in 2010 and is based in New Delhi, India.