Rekha Jhunjhunwala-Backed Stock Trades Ex-Dividend For 175% Payout; Buy/Sell?

The Indian Hotels Company Limited (IHCL) is South Asia's largest hospitality enterprise that manages a portfolio of hotels, resorts which includes brands like Taj, SeleQtions, Vivanta, Ginger, amã Stays & Trails, Taj Sats and Qmin. The blue chip stock is in focus after it trades ex-dividend for 175% payout on Friday. For FY24, IHCL had declared a final dividend of Rs 1.75 per share for which the record date was 7th June 2024. Indian Hotels Company is a portfolio stock of Rekha Jhunjhunwala as the wife of late Indian billionaire investor Rakesh Jhunjhunwala held a 2.09% stake in the company during the quarter ended March 2024.

Indian Hotels Company Dividend

"We are pleased to inform you that the Board of Directors at their Meeting held on April 24, 2024, have recommended a Final Dividend of Rs 1.75/- per Equity Share of Rs 1/- each (175%) for the Financial Year ended March 31, 2024 subject to shareholders' approval at the ensuing Annual General Meeting (AGM) to be held on Friday, June 14, 2024," said the company in a regulatory filing.

Indian Hotels Company Dividend Record Date

"Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, June 7, 2024, as the Record Date for determining entitlement of Members to dividend for the financial year ended March 31, 2024. If the dividend as recommended by the Board of Directors is approved at the AGM, payment of such dividend, subject to deduction of tax at source, will be made on or after Friday, June 21, 2024," said Indian Hotels Company in a stock exchange filing.

Indian Hotels Company Latest News

A strategic relationship between Indian Hotels Company (IHCL) and CG Hospitality was announced earlier on May 9. This agreement extends IHCL's existing relationship with TAL Hotels & Resorts Limited and Taj Safaris Limited, with the goal of building a portfolio of 25 properties by 2025. The platform Ekyam will mainly look for potential in places that provide wildlife escapes, adventure experiences around the Indian Ocean and Greater Himalayan areas. Taj Exotica Resort & Spa, Taj Coral Reef Resort & Spa in the Maldives, Taj Samudra, Colombo, Sri Lanka, Taj Jumeirah Lakes Towers, Dubai, and Taj Safaris, the opulent wildlife lodges in India and Nepal, are among the company's current operating footprints in the Indian Sub-Continent and Middle East.

Mr. Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL said, "IHCL has a long-standing association with CG Hospitality, a member of the renowned CG Corp Global for over two decades. We are delighted to announce that the next phase of this partnership will pursue accelerated growth in the Indian Subcontinent. This collaboration under the platform - Ekyam, will explore opportunities to manage hotels across regions around the Himalayas as well as Indian ocean and strengthen the wildlife sector."

Mr. Rahul Chaudhary, MD of CG Hospitality, said, 'The platform will commence with the current portfolio of 11 operating hotels. CG Hospitality has invested over INR 1,250 crores in the operational and upcoming hotels thus far and is committed to onboard 14 more hotels under this partnership."

Dr. Binod Chaudhary, Chairman, CG Corp Global, said, "We are proud of CG Hospitality's partnership with Tata Group's IHCL, spanning 25 years. This expansion underscores the confidence and trust we place in IHCL's century old legacy which is globally recognised as the benchmark in Indian hospitality."

Indian Hotels Company Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "INDHOTEL is currently trading at 587 levels, showcasing a strong bullish trend. The stock's positive momentum is evidenced by its position above key Exponential Moving Averages (EMAs) across short-term (20 Day), medium-term (50 Day), and long-term (200 Day) periods, indicating robust strength. On the downside, INDHOTEL has a solid support level near 565, which coincides closely with its 50 Day EMA, offering a reliable cushion against potential price dips. This level serves as a critical point for investors to monitor for maintaining positions and managing risk."

"On the upside, the stock faces a minor resistance around the 600 level. Surpassing this resistance could pave the way for further gains, with a target of 622 and potentially higher. The breaking of this resistance would signal a continuation of the bullish trend, providing a strong opportunity for further price appreciation. Investors holding the stock from lower levels are advised to continue holding their positions, using a trailing stop loss set at 565 to protect gains. This approach balances risk management with the potential for additional upside as the stock aims for the 622 target and beyond," the analyst further added.

Disclaimer

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