Tata Group Stock To Buy That Can Give 22% Upside, Revenue Surged 86%

Broking firm Motilal Oswal has recommended buying the stock of Indian Hotels for an upside of as much as 22% from the current levels. The brokerage has set a target price of Rs 415 on the stock of Indian Hotels post the quarterly numbers.

Good corporate results: 22% jump in stock a possibility

According to Motilal Oswal, Indian Hotels reported healthy Q4 earnings with revenue/PAT growth of 86%/5.3x YoY. Occupancy grew by 1,630 basis points YoY to 74.7% while ARR grew by 60% YoY. In FY23, Ginger achieved EBITDA margin of 37%, led by revenue of Rs 3 billion (up 44% over FY20).
In FY23, revenue/EBIDTA grew 90%/4.5x YoY to rs 58.1 billion/Rs 18 b. Adj PAT stood at Rs 10b v/s net loss of Rs 2.6 billion in FY22.

Subsidiary (consolidated less standalone) sales grew 77% YoY but fell 21% QoQ to Rs 4.9 billion. Subsidiary EBIDTA declined 63% QoQ to Rs 582 million (v/s operating loss of Rs 44 million in 4QFY22).

In FY23, Indian Hotels opened 16 hotels & signed 36 management contracts. It has expanded its global footprint to new geographies with Taj Riyadh, Taj Dhaka & Vivanta Dhaka.

"We expect new and re-imagined businesses to provide an incremental boost to Indian Hotel's growth trajectory with their margin and ROCE-accretive business models," the brokerage has said. The stock of Indian Hotels last closed at Rs 339 on the Bombay Stock Exchange.

Disclaimer

Please note, we have highlighted the stock recommended by Motilal Oswal and this is not a recommendation of the author, nor Greynium Information technologies Pvt Ltd. This article is information and we have not done any fundamental analysis. Neither the broking firm, nor the author nor Greynium Information Technologies Pvt Ltd would be responsible for losses caused from a decision in this article.