Shares of Indian Hotels Company Ltd. gained for the fourth day in a row on Friday, hitting a new 52-week high of Rs 364.35.
The stock, which is a part of renowned investor Rekha Jhunjhunwala’s portfolio, hit a new life-time high earlier this week on Tuesday after reporting healthy quarterly earnings for the March quarter, mostly beating the expectations set by analysts.
The Tata Group company stock has gained 43 percent in the last one year and over 400 percent during the last three years.
Indian Hotels reported a quarterly net profit of Rs 328 crore for the fourth quarter, a rise of 343 percent compared to Rs 74.19 crore in the year-ago period. It must be noted that the base quarter was impacted by the Omicron variant outbreak of Covid-19.
The company’s revenue increased by 86 percent year-on-year to Rs 1,625 crore in the quarter, driven by higher occupancy and ARR, which led to strong growth in RevPAR. The revenue rose from Rs 872.08 crore in the same quarter last year.
Analysts expect more upside from the stock in the near term, after Indian Hotels’ March quarter earnings.
Earlier this week, Motilal Oswal increased EBITDA estimates for Indian Hotels for financial year 2024 and 2025 by 5 percent and 3 percent respectively, led by an improved average room rates, normalisation of inbound travel, and the addition of new owned or leased and management hotels.
The brokerage firm has held its buy rating on the stock, along with a price target of Rs 420 per share.
Shares of Indian Hotels are trading 0.5 percent higher at Rs 358.75, cooling off from the day's high.
