Indian Hotels gains on report of brokerage upgrade

Indian Hotels Company rose 2.83% to Rs 131 at 14:39 IST on BSE on reports a foreign brokerage upgraded shares of the company to 'overweight', stating that the stock is on the cusp of an uptrend.

Meanwhile, the BSE Sensex was down 221.76 points, or 0.83%, to 26504.58.

On BSE, so far 2.16 lakh shares were traded in the counter, compared with an average volume of 41.38 lakh shares in the past one quarter. The stock hit a high of Rs 133 and a low of Rs 129.60 so far during the day. The stock hit a 52-week high of Rs 133 on 16 June 2016. The stock hit a 52-week low of Rs 80.75 on 7 September 2015. The stock had outperformed the market over the past one month till 15 June 2016, rising 10.35% compared with 3.70% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 35.32% as against Sensex's 8.30% rise.

The large-cap company has an equity capital of Rs 98.93 crore. Face value per share is Re 1.

According to reports, the brokerage says that the upgrade reflects scenario value increases of 30-83% driven by estimate changes and sale of Taj Boston and higher bull case probability of 30%. The company is planning to sell the Taj Boston hotel for at least $125 million, the brokerage reportedly added.

On a consolidated basis, Indian Hotels Company reported net loss of Rs 51.72 crore in Q4 March 2016 as against net loss of Rs 307.43 crore in Q4 March 2015. Net sales rose 10.94% to Rs 1228.45 crore in Q4 March 2016 over Q4 March 2015.

Indian Hotels Company is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.

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