1:10 Split: Tata Hotel Stock Likely To Hit TP Of Rs 680, Buy Recommended: Motilal Oswal

Motilal Oswal has recommended investors to buy Tata Group Hotel Stock Indian Hotels Co. Ltd with target price of Rs 680 per share. Current market price of Indian Hotels share is Rs 636.85 per share with intraday fall of 0.23% as on June 21, 2024. Indian Hotels Co shares offered attractive returns of 187% in last 2-years and surged 61% in last 1-year. Earlier this year on April 24, Indian Hotels announced a growth of 27.43% year-on-year (YoY) in its net profit for the quarter ended March 31, 2024 to Rs 418 crore for Q4 as compared to Rs 328 crore announced in the corresponding quarter of last year.

Indian Hotels also announced a dividend of Rs 1.75 per share with ex-dividend date set as June 7, 2024. FII/FPI increased holdings from 23.28% to 24.47% for March 2024 quarter.

Indian Hotels Company last split face value of its shares from Rs 10 to Rs 1 in 2006. Indian Hotels shares traded ex-split from October 27, 2006. Recently, the Members approved the re-appointment of Mr. Nasser Munjee, Ms. Hema Ravichandar and Mr. Venkataramanan Anantharaman as Independent Directors of the Company by way of Special Resolution at the 123rd Annual General Meeting of the Company held on June 14, 2024.

Indian Hotels Dividend History: Indian Hotels Company announced a total of 23 dividends since July 30, 2001. In last 1-year, Indian Hotels Company announced an equity dividend amounting to Rs 1.75 per share. At the current share price of Rs 636.85, Indian Hotels Company offers a dividend yield of 0.27%.

Indian Hotels Stock Performance & Return: The 52-week high price of Indian Hotels share on BSE is Rs 648.40 per share (as on 21/06/2024) and 52-week low price is Rs 371.45 apiece (as on 27/10/2023), respectively. It market capitalisation is 90,651.28 crore. Indian Hotels shares offered return of 46% year-to-date (YTD), soared 48% in last 6-months, jumped 61% in last 1-year, and offered return of 391% in last 3-years and surged 336% in last 5-years.

Should You Buy Indian Hotels Company Share? Two leading brokerages have issued buy call to Indian Hotels Company share with maximum target price set at Rs 680. Sharekhan has recommended buy call with target price of Rs 679 per share. According to the analyst, ""EBITDA margins will consistently improve in coming years. With strong room inventory, IHCL is the best pick to capture strong growth momentum in domestic tourism in the coming years. We maintain a Buy recommendation on the stock with a revised price target of Rs. 679."

Motilal Oswal assigned buy rating to Indian Hotels share with target price of Rs 680 per share. The analyst said, "Growth in the standalone business was driven by better occupancy (up 440bp YoY) and ARR (up 4% YoY; LFL 8% excluding Ginger Santacruz). Standalone management contract revenue rose 32% YoY to Rs 1.5b. We broadly maintain our FY25/FY26 EBITDA estimates and reiterate BUY with our SoTP-based target price of Rs 680."

Disclaimer: The stocks has been picked from the brokerage report of Sharekhan and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.