Samhi Hotels has strategically focused on Tier-1/metro markets, which are commercial hubs and thus, act as natural demand drivers for hotels. Company ensures presence across different price points in each market to capture demand across segments. Within each market, Samhi has strategically placed its assets in right micro-markets, which results in superior ADRs and occupancies for its properties.
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Yes Securities Report
We initiate coverage on Samhi Hotels Ltd. with a Buy rating and expect it to be the key beneficiary of industry upcycle. We believe Samhi has promising growth prospects based on following factors:
Presence in key metro markets with incremental capacity addition,
Proven track record of asset turnaround,
GIC Investment opens up more avenues for growth in upscale and above segment,
Large investible surplus to be generated via robust free cash flow, which will accelerate growth,
strong re-rating potential due to significant valuation discount to peers.
We pencil in revenue/ Ebitda/PAT CAGR of +14%/+19%/+57% over FY25-28E and value the company at Jun’27 EV/Ebitda multiple of 15 times, arriving at target price of Rs 305.
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