This Hotel Stock Can Rally Upto 71%, Says Yes Securities — Do You Own It?

Strong H2, lower leverage could trigger sharp re-rating for this stock - check target price.

SAMHI’s portfolio is witnessing a shift towards up-upscale and upscale segment with contribution expected to reach ~43% from ~22% currently.

(Photo Source: Company)

SAMHI currently trades at attributable FY26/FY27/FY28E EV/Ebitda multiple of 12x/10.1x/8.2x, at a significant discount to peers, despite strong growth prospects. We believe growth pick up in H2 along with consistent profitability and net debt reduction can aid material rerating for the stock.

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Yes Securities Report

We believe Samhi Hotels Ltd. has significant potential for outperformance from the current levels based on following factors:

  1. Growth is expected to see strong pick-up in H2,

  2. Consistent capacity addition provides growth visibility,

  3. Renovation and Rebranding to drive ARR growth,

  4. Portfolio Mix shifting towards premium segments,

  5. Balance sheet improving with consistent reduction in net debt/Ebitda,

  6. Attractive Valuations backed by strong growth prospects with revenue/Ebitda/PAT CAGR expected at +13%/17%/54%.

We value SAMHI at Sep-27 EV/Ebitda of 15x. Reiterate Buy with target price of Rs 300.

Click on the attachment to read the full report:

Yes Securities Samhi Hotels Ltd Nov 25.pdf
Read Document

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