Rakesh Jhunjhunwala stock Indian Hotels rises after Q1 profit jumps to Rs 170 crore; should you buy, hold or sell?

Rakesh Jhunjhunwala portfolio stock India Hotels Company (IHCL) jumped 1 per cent on Wednesday, after the the company reported a consolidated net profit of Rs 170 crore for the quarter ended June 2022, mainly due to surge in demand as the occupancy and rates exceeded pre-COVID levels. IHCL’s revenue surged by 249.45 per cent to Rs 1,293 crore during the quarter under review, compared to Rs 370 crore in the year-ago period. The hospitality major reported its best first quarter in the company’s history. The company is expecting a double-digit revenue growth in the second quarter as well, said MD and CEO Puneet Chhatwal. So far this year, IHCL share price has rallied 47%, outrunning benchmark Nifty 50, and analysts see up to 18% more upside going forward. Indian Hotels Co shares were trading at Rs 274, up 1.62% on NSE intraday.

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Edelweiss Securities: BuyTarget price: Rs 316; Upside:16.1%

Edelweiss Securities in its report noted that the Indian Hotels delivered a phenomenal quarter potentially its best ever Q1. The current trends have sustained in Jul-22 and with the revival of international arrivals, there is visibility of the strong traction sustaining. The brokerage thus increased its FY23, FY24 EBITDA by 14% and 10% respectively baking-in higher RevPars. The brokerage maintains ‘buy’ rating with a DCF-based target price of Rs 316, up from Rs 274 earlier.

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