Maintain 'buy' on Indian Hotels – TP Rs.93 - Geojit BNP Paribas Financial Services Limited

Company has reported 3QFY12 standalone result that reflects domestic business only. Revenue beats expectation while margins are lower than expectations.

Revenue at Rs.530 crore increased 9% yoy and 41% qoq.

EBITDA at 28% versus 15% in 2QFY12 and 30% in 2QFY11. Market expectation of EBITDA margin was 32%.

Lower EBITDA margin was due to higher license fees and staff costs.

Net debt of the company increased to Rs.3600 crore from Rs. 3400 crore in 2QFY12.

Goa market performed the best with average room rent improved 5% yoy.

Key catalyst to the stock would be turnaround of its international portfolio that contributes one third of revenue.

Buy raing is maintained with a target price of Rs.93 over one year.

Source : Equity Bulls

Keywords