Sharekhan Suggests A " Buy" On This Tata Group Stock
Brokerage firm Sharekhan has suggested a buy on Tata Group stock Indian Hotels, as the brokerage sees good upside potential.
Indian Hotels: Reports strong growth
Indian Hotels Company posted one of its strongest quarter in the past several years with strong double digit revenue growth, strong expansion in the EBIDTA margins and profit crossing Rs. 300 crore ( equivalent to FY 2020 levels).
Consolidated revenues grew by 52 % y- o- y to Rs. 1685.8 crore with room revenues growing by 26% to Rs. 818 crore, food & beverages (F&B) revenues growing by 17 % to Rs.
EBIDTA margins expand
The revenues grew by 68.0%, with lower interest cost led to 3 .7 x growth in the adjusted PAT to Rs. 352 crore.
Buy the stock of Indian Hotels with a price target of Rs 380
According to Sharekhan, the company has charted a strong growth plan to be achieved by FY 2025 - 26 with strong improvement in cash flows and strengthening the balance sheet with a focus on becoming debt- free.
"EBITDA margins will consistently improve in the coming years.
Thus, we maintain IHCL as one of our top picks in the hospitality space," the brokerage has said.
By Sunil Fernandes Goodreturns source: Dailyhunt