Nuvama Maintains Bullish Outlook On Small Cap Hotels Stock, Sees 54% Strong Gains, Buy

Nuvama, a leading brokerage firm, maintains its positive outlook on Royal Orchid Hotels Ltd, a small cap Hotels sector stock. The brokerage assigns a "Buy" call on the stock with a target price of Rs 433/share. Given the target price, if you buy the stock at the current market price, it can fetch you a potential gain of up to 54% from the current market price.

Royal Orchid & Regenta Hotels is one of India's fastest-growing hospitality brands, managing a portfolio of over 75+ properties across the country. It has a market valuation of Rs 776 crore.

Stock Outlook - Current Market Price, 52-week High/Low, and Returns

On NSE, the stock of Royal Orchid Hotels last traded at Rs 282.95 apiece, up 4.16% from the previous close. It traded the 52 week low at Rs 112.15 apiece and 52 week high at Rs 317.70 apiece, respectively. The stock has performed well over the past 5 years, given positive returns. It gained 6.81% in the past 1 week, 9.76% in the past 1 month and 8..45% in the past 3 months, respectively. It has given 104.52% positive return in the past 1 year. In 3 years it gave robust 515.78% positive return. In 5 years it gave 32.72% positive return.

Maintain 'BUY' with TP of INR433

Nuvama said, "We remain confident of ROHL's ability to deliver a superior performance on favourable industry dynamics and elaborate expansion plans. We expect it to deliver a revenue/EBITDA CAGR of 45.9%/75.3% over FY22-25 on RevPAR growth and room additions. The company trades at a significant discount to its peers, which will narrow on improving brand recognition and its robust financial performance."

It added, "At the CMP of INR272, the stock trades at 11.3x FY24E EPS and 7.2x FY24E EV/EBITDA. We value the stock at 12x FY24E EV/EBITDA and maintain 'BUY' with a TP of INR433."

Disclaimer - The stock has been picked from the brokerage report of Nuvama. 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.