Company Update - Indian Hotels - ICICI Direct

Posted On : 2021-10-12 21:12:54( TIMEZONE : IST )

Company Update - Indian Hotels - ICICI Direct

  • The company is witnessing strong traction in room demand in the leisure destinations. Revenue per occupied room (RevPAR) in some leisure destinations has already crossed pre-pandemic levels reflecting the encouraging trend along with the increase in average length of stay to five to seven days vs. two to four days earlier
  • Corporate segment, which has remained a laggard so far due to work from home culture till Q1FY22, is also seeing good traction from Q2 onwards. International destinations such as US, UK and Dubai are bouncing back with demand reaching 55-60% of pre-Covid levels during Q2 vs. 39% in Q1FY22
  • Daily domestic air traffic has now reached 76% of pre-Covid levels in October 2021 with the government allowing airlines to operate at 85% capacity vs. 72.5% earlier. Also, doors are now open for foreign tourists from November 2021 onwards to visit India. This would drive revenues of the premium segment hotel rooms sooner than expected earlier
  • We expect healthy 62.9% revenue CAGR over FY21-23E. Expect business to recover to 93% of pre-Covid levels in FY23E with EBITDA surpassing pre-Covid levels in FY23; margins seen at over 24% in FY23E that has potential to further expand to 30%+. Improved cash flows, equity infusion and divestment of non-core assets to help manage debt at comfortable levels

For details, click on the link below: Link to the report

Shares of The Indian Hotels Company Limited was last trading in BSE at Rs. 213.90 as compared to the previous close of Rs. 206.80. The total number of shares traded during the day was 1580374 in over 9889 trades.

The stock hit an intraday high of Rs. 218.90 and intraday low of 207.50. The net turnover during the day was Rs. 338706196.00.

Source : Equity Bulls


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