Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 17642.65 Crore) operating in Tourism & Hospitality sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 626.47 Crore, up 1.94 % from last quarter Total Income of Rs 614.53 Crore and down -43.10 % from last year same quarter Total Income of Rs 1101.02 Crore. Company reported net profit after tax of Rs -89.92 Crore in latest quarter.
Investment Rationale
The company reckons that demand will completely revive in FY23 subject to the speed of vaccination. It wants to focus on and expand its new brands and business, started in the last 1-2 years and aims at a further 10% revenue (~50-80% EBITDA flow through) from these businesses in the next 2-3 years. It reiterated its focus on driving asset-light profitable revenue growth, which would expand RoCEs. On the subsidence of the Covid-19 pandemic, the brokerage expects it to outclass others, driven by its dominance in the Indian hotels sector, superlative brand equity and well-diversified portfolio across business segments and price-points. It retains Buy on the stock with a new TP of Rs 175, earlier Rs 130 (sum-of-parts, valuing at 19x consolidated FY23E EBITDA From 16x earlier).
Promoter/FII Holdings
Promoters held 40.8 per cent stake in the company as of March 31, 2021, while FIIs held 12.3 per cent, DIIs 27.3 per cent and public and other 19.6 per cent.
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