Indian Hotels stock falls 5% post Q4 results; peer group shares rise

Indian Hotels stock update: Share price declined 5% day after company reported 29% growth in net profit.

Indian Hotels stock price plunged 5.1 per cent to a low of Rs 577 in Thursday intra-day trades, a day after the company posted its Q4 results.

At 11:30 AM, Indian Hotels stock was trading 4.5 per cent lower at Rs 581 on volumes of around 2.63 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.1 per cent at 73,900.

Meanwhile, peer group stocks traded with a positive bias. Mahindra Hotels & Resort was up 2 per cent, Chalet and EIH up 1.5 per cent each.

The Indian Hotels Company on Wednesday reported a 29.4 per cent year-on-year (YoY) growth in consolidated net profit at Rs 438.33 crore for Q4FY24 when compared with Rs 338.84 crore in Q4FY23. Total income for the quarter under review, rose 18 per cent YoY to Rs 1,951.46 crore.

Speaking at the event, Puneet Chhatwal, Managing Director & CEO of IHCL, said, "With 53 signings in FY2024, Indian Hotels achieved a portfolio of 310 hotels, enabled by attaining scale in each of our brands and forming strategic alliances in new market segments".

Puneet Chhatwal expressed confidence that Indian Hotels will continue to deliver double-digit revenue growth with new businesses and the opening of 25 hotels in FY25.

The hotel chain will introduce the re-imagined Gateway, a full-service hotel offering in the upscale segment, an ideal fit to capture growth opportunities in emerging micro markets in metros and Tier II and Tier III cities. The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik this quarter followed by destinations like Bengaluru, Thane and Jaipur, Chhatwal added.

Meanwhile, Morgan Stanley has maintained its 'Overweight' stance on Indian Hotels, with a target price of Rs 529. The stock presently trades above its target price.

Investec has a 'Buy' rating on the stock, with a target price of Rs 626 per share.

Analysts at brokerage firm Prabhudas Lilladher believe that the Indian Hotels results were below consensus estimates. The brokerage firm, however, has no rating on the Indian Hotels stock.
 

Indian Hotels stock has outperformed on the bourses so far in 2024. The stock has rallied over 32 per cent, as against a 2.5 per cent gain on the BSE benchmark index.