Tata Group Stock Trading 2.03% Away From 52-Week High To Buy As Recommends Motilal Oswal

Motilal Oswal has a Buy on Indian Hotels Company Ltd. for a target price of Rs. 440 apiece. With the given target price, the stock is showing a potential upside 13% from its current market.

Indian Hotels is conglomerate Tata Group's Hotel & Resorts sector company primarily engaged in the business of owning, operating & managing hotels, palaces and resorts. It is a large-cap company having a market capitalisation of Rs. 55,580.27 crore.

Valuation and view

According to the brokerage firm, IH is on track to achieving a majority of the targets outlined in Ahvaan 2025 within the designated timeline. The company has even upgraded certain metrics beyond the original guidance. These upgrades include an increased number of hotel openings, stronger growth from new and re-imagined businesses (Ginger/Chambers), maintaining margins (at 33%) through an asset-light growth strategy (50:50 portfolio mix), and strengthening its balance sheet.

The brokerage said, "We expect the strong momentum to continue in FY24, led by: 1) a further improvement in occupancy rate, driven by multiple large global events such as G20 and ICC Cricket Men's World Cup in CY23; 2) increase in ARR due to increased 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, "We expect IH's revenue/EBITDA/Adj. PAT CAGR of 12%/19%/21% over FY23-25. We reiterate our BUY rating with an SoTP-based TP of INR440."

Stock Outlook

The stock of Indian Hotel last traded on NSE at Rs. 391.30 apiece, down 0.52% from its previous close. It traded its new 52 week high on June 2, 2023, at Rs. 399.30 apiece, while the 52 week low its recorded on June 20, 2022, at Rs. 207.25 apiece. Stock is trading 2.03% down from the 52 week high.

The stock declined 1.15% in the last 1 week. It jumped 9.42% in 1 month and 23.97% in 3 months, respectively. It gave 80.82% positive return in 1 year. In 3 years, it gave a robust return of 340.65%. It gave 189.1% positive return in 5 years.

Disclaimer - The Tata Group Company 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.