Broker’s call: Indian Hotels (Buy)

Posted on by

Target: ₹880

CMP: ₹799.30

Indian Hotels has emerged as a compelling growth story in the Indian hospitality sector following its transformative journey during FY17 to FY24. With a notable financial turnaround, expansions across traditional and new businesses, and a clear strategy for long-term growth,

IH has become a market leader in the industry. At its Capital Market Day conference, IH has laid out its roadmap for the next five years – Acclerate 2030.

IH aims to become the most valued, responsible, and profitable hospitality ecosystem in South Asia. The company plans to expand its portfolio to 700 hotels (including pipeline), double consolidated revenues to INR150b, and achieve 25 per cent plus of revenues from innovative and reimagined businesses like Ginger, Qmin, and TajSATS.

We believe the company’s strong operational performance, portfolio diversification, and focus on sustainability will provide a robust foundation for its ambitious 2030 goals. We have largely maintained our FY26 EBITDA estimates (+3 per cent) and raised our FY27 estimates by 8% to incorporate healthy ARR growth (about 7 per cent y-o-y), a robust hotel pipeline and an increase in F&B revenue, backed by healthy MICE growth. We maintain BUY with a TP of ₹880 (based on FY27E (SoTP)