Motilal Oswal Picks Midcap Tata Stock, Suggests Buy For 21% Gains, Hits 52 Week High

Broking Firm Motilal Oswal has come up with a buy recommendation on Indian Hotels Company Limited (IHCL). The broking firm has assigned a target price of Rs 420 apiece on the stock of IHCL with a buy recommendation. Given the target price, the stock can give up to 21% return. IHCL is Tata Group's Hotels sector company. It is a midcap company having a market capitalisation of Rs. 48,165.78 crore.

Valuation and view

Motilal Oswal said, "We expect the strong momentum to continue in FY24, led by: 1) a further improvement in occupancy due to multiple large global events such as G20 and ICC Cricket Men's World Cup in CY23; 2) an increase in ARR due to better demand, upgrades in hotels and corporate rate hikes; 3) higher income from management contracts; and 4) value unlocking by launching reimagined and new brands."

It added, "Factoring in the 4QFY23 performance, we raise our FY24/FY25 EBITDA estimates by 5%/3%, aided by better-than-expected ARR, addition of new owned/leased and management hotels, and the normalization of inbound travel. Maintain BUY with an SoTP-based TP of INR420."

Stock's Current Market Price, 52-Week High/Low, & Returns

The stock is currently trading at Rs. 347.05 apiece, up 2.34% hitting the new 52 week high of RS 350.60 apiece. The stock hit the 52 week low on 29 June 2022 at Rs. 207.25 apiece. Its previous close was Rs. 339.10 apiece.

The stock gained 2.77% in 1 week. It gained 7.37% in 1 month and 9.51% in 3 months, respectively. It has given 335.86% positive return in the past 3 years. In the past 5 years, it gained 136.02%.

Disclaimer - The stock has been picked from the brokerage report of 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 consult with certified experts before making any investment decision.