Shares of Indian Hotels rose ~2% after ~10 lakh shares changed hands in the block deal on the NSE.
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| capitalstars |
Indian Hotels Co Ltd is currently trading at Rs150.50 up by Rs3.25 or 2.21% from its previous closing of Rs147.25 on the BSE.
The scrip opened at Rs146.80 and has touched a high and low of Rs151.50 and Rs146.80 respectively.
Indian Hotels is a Tata enterprise with brands such as Taj, Vivanta, and Ginger Hotels. It has 144 hotels with 17,360 rooms, as on November, 2018. IHCL had an average occupancy of 64% (including international hotels) in H1FY19.
Indian Hotels (IHCL) is a proxy player in the Indian hospitality industry considering its leadership in domestic markets, strong brand recognition and presence across value chain. It has 75% of the current inventory under freehold/leasehold, which is evaluated to unlock capital through sale and lease-back models or lease assets to SPVs. It also a pipeline of ~4,175 rooms (consolidated level) across all its brands as on November 14, 2018.
Overall, we expect a standalone revenue CAGR of 11% and EBITDA margin expansion of ~420bps to 28.5% over FY18-20E, on account of rising occupancy coupled with improving average room rent.
We expect standalone PAT CAGR of 38% over FY18-20E, owing to the aforementioned factors. The consolidated net debt-equity ratio stood at 0.5x, as on November 30, 2018.
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