HSBC has maintained its buy rating on Indian Hotels Co. while cutting its target price to Rs 800 from Rs 874, citing a reduced valuation multiple. The current market price of the stock is Rs 629.4. Even though the target price is trimmed, the stock still shows a potential upside of 27% as compared to the current market price.
The brokerage said the company's Q4 performance is likely to be less impacted, with low double-digit revenue growth expected for the quarter. HSBC noted that Q4 could benefit from strong domestic leisure demand, supporting growth momentum despite a mixed operating environment.
Looking ahead, the brokerage expects healthy growth in FY27, with earnings likely to receive a boost from new hotels in Germany and Ekta Nagar, alongside expansion in Varanasi and recent acquisitions. HSBC believes these additions could meaningfully contribute to scale and profitability over the medium term.
The brokerage said that they will monitor whether management expects downward pressure this year in case the recovery in inbound international tourism falls short of its expectations. IHCL's strategy is shifting towards growth in several new segments, which includes the recently acquired wellness brand Atmantan, scaling up its Ginger brand, and new business verticals such as Taj SATS and Qmin, HSBC noted.
Indian Hotels Co. Share Price Today
Indian Hotels Share Price Rises
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Shares of Indian Hotels Company Ltd. rose over 6% on Wednesday with the stock trading Rs 638.20 intraday high at 9:46 a.m. with the scrip rising as much as 6.35%. This compares to a 3.60% rise in the NSE Nifty 50 Index.
It has fallen 17.96% in the last 12 months and 14.07% year-to-date. Total traded volume so far in the day stood at 3.14 times its 30-day average. The relative strength index was at 33.58.
Out of 30 analysts tracking the company, 24 maintain a 'buy', five maintain a "hold" rating while one maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 803.41 implies an upside of 26.8%
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