Rekha Jhunjhunwala portfolio stock: Indian Hotels drops 5% post Q4 results

Business Standard

06-05-2025

Indian Hotels share price today
Rekha Jhunjhunwala-owned stock, Indian Hotels Company, dropped as much as 5 per cent on the BSE in Tuesday's intraday trade after the hotel stock reported its March 2025 results.
Indian Hotels Company share price slipped 4.9 per cent to hit an intraday low of ₹762.4 per share on the BSE. As many as 0.26 million shares have changed hands on the counter on the exchange, as against a two-week average of 0.098 million shares.
Why are Indian Hotels shares down today?
Indian Hotels shares fell in the stock market today after various brokerages said that the Jhunjhunwala portfolio stock has limited upside from here, given that most of the positives are priced in.
Most brokerages have maintained their ratings and share price targets on Indian Hotels stock, despite the company posting strong results for Q4FY25, given the rich valuations.
Indian Hotels Q4 results 2025
(Y-o-Y). This was led by growth in the Hotels segment (13 per cent Y-o-Y with 14 per cent rise in average room rate (ARR) and 15.5 per cent Revenue per available room (RevPAR)).
Further, Indian Hotels posted a consolidated Ebitda and adjusted net profit growth of 30 per cent and 26 per cent Y-o-Y, respectively, at ₹860 crore and ₹520 crore.
Indian Hotels' new business verticals, comprising Ginger, Qmin, and amã Stays & Trails grew 40 per cent Y-o-Y to ₹600 crore in FY25, while TajSATs posted 17 per cent Y-o-Y growth to ₹1,050 crore. Chambers reported revenue of ₹150 crore, up 25 per cent Y-o-Y. READ MORE
Rekha Jhunjhunwala Portfolio Stock
At the end of the March 2025 quarter, Rekha Jhunjhunwala, wife of late ace investor Rakesh Jhunjhunwala, owned 1 per cent stake in Indian Hotels Company.
Indian Hotels stock analysis, price target
Elara Capital sees 7% upside in Indian Hotels stock
Indian Hotels has guided for ₹1,200 crore capex in FY26. Of this, 60–65 per cent will be allocated towards major renovations and digital upgrades, while the remainder will go towards greenfield developments.
Moreover, the company has 15,900 keys in the managed hotel pipeline, of which 2,959 and 3,251 keys are likely to be opened in FY26 and FY27, respectively. The brokerage expects accelerated growth in management fee to continue as new hotel openings from management contract in FY26 and FY27 are tilted towards high-end brands such as Taj, SeleQtions and Vivanta.
"We have reduced Indian Hotels' Ebitda estimates by 3 per cent each for FY26 and FY27 to factor in lower margin for Taj SATS, to realign our RevPAR growth assumption. We reiterate 'Accumulate' rating with a share price target of ₹861 (unchanged)," it said.
Motilal Oswal maintains 'Buy'
Indian Hotels has maintained its double-digit revenue guidance, supported by strong structural tailwinds in the industry, with demand consistently outpacing supply.
Growth is further driven by rising Foreign Tourist Arrivals (FTAs), increased MICE activity, expanding leisure tourism, and Indian Hotels' robust development pipeline.
"We expect Indian Hotels to continue its upward trajectory, with revenue/Ebitda/adjusted PAT CAGR of 16 per cent/22 per cent/22 per cent over FY25-27E. We broadly maintain our FY26/FY27 Ebitda estimates," it said with a share price target of ₹940.
Nuvama Institutional Equities maintains 'Reduce'
Based on the Q4 performance, the brokerage has tweaked FY26/27 revenue and Ebitda estimates by 1 per cent and 2 per cent each, respectively. The brokerage has maintained its share price target of ₹628 and a 'Reduce' rating on the stock as its valuation has "run up much ahead of earnings".
YES Securities downgrades to 'Neutral'
The management has maintained its revenue growth in FY26E, driven by ARR. Generally, ARR growth results in better flow through to Ebitda, compared to occupancy-led growth, which can drive margin expansion.
For FY26, the management has guided for opening of 30 new properties, of which 3-4 properties will be owned. Total pipeline consists of ~19.5K keys, including ~15.9K managed keys. However, the near-term pipeline has been trimmed by ~925 keys, including ~250 owned keys, which can hamper near-term growth outlook.
"We pencil in Revenue/PAT CAGR of 16 per cent/22 per cent over FY25-27E. We value Indian Hotels Company stock at a premium to peer set, at FY27E EV/Ebitda multiple of 28x. Despite these factors, upside seems limited at 4-5 per cent," it said with a downgrade to 'Neutral' and a target price of ₹835.