 "Samhi Hotels gets 'Buy' from Antique; sees 41% upside on growth tailwinds")
Antique Stock Broking has initiated coverage on Samhi Hotels, citing strong structural tailwinds in the hospitality sector and the company's acquisition-led growth strategy.
The brokerage gave a 'Buy' rating on the stock with a target price of ₹260, an upside of 41 per cent from Friday's close.
The brokerage expects the company to sustain strong double-digit revenue growth over the near to medium term, supported by portfolio expansion and a favourable industry backdrop.
Samhi Hotels operates a pan-India portfolio of 31 hotels with 4,862 rooms across 13 major cities. Its properties are managed by leading global hotel brands such as Marriott, Hyatt and IHG under long-term agreements. Antique notes that the company has built a strong track record of acquiring and turning around underperforming hotels, positioning it among the fastest-growing hotel owners in the country.
The brokerage expects Samhi to benefit from structural growth drivers in the hospitality space by expanding its portfolio through the rebranding of 473 rooms and the addition of around 1,500 rooms via expansions and new openings. ALSO READ | Mcap of 7 most valued firms surges ₹1.23 trn, Reliance biggest winner
Over financial years 2024-25 to 2029-30 (FY25-FY30), Antique estimates revenue and Ebitda to grow at a compound annual growth rate (CAGR) of 14 per cent and 18 per cent, respectively. It also expects the Ebitda margin to improve by about 600 basis points to around 42 per cent over the same period.
Antique remains positive on the broader hospitality sector, expecting strong growth to continue over the near to medium term. Against this backdrop, it forecasts Samhi Hotels' revenue to grow at a 14 per cent CAGR between FY25 and FY30, with margin expansion driven by a robust project pipeline and an improving portfolio mix.
According to the brokerage, the company's strategy focuses on acquiring undervalued hotels in high-potential markets and upgrading them quickly, rather than pursuing slower greenfield development projects.
By purchasing assets at attractive valuations, the company reduces development risk and, through partnerships with international brands, undertakes renovation, reconfiguration and rebranding. Its turnaround model, which combines product upgrades, cluster efficiencies and data-led asset management, is seen as boosting margins, improving guest experience and lifting occupancy and revenue per available room, Antique said.
Antique also highlighted Samhi's efforts to increase market share in emerging commercial markets. With a pipeline of around 1,000 rooms through expansions, dual branding and asset-light leases, the company announced two major expansion initiatives in the second quarter of FY26. ALSO READ | Analysts bullish on Devyani after Sapphire Foods merger approval
Samhi Hotels share price history
Shares of the company rose for the second straight session. The counter has fallen 6 per cent in the last 12 months, compared to a 11 per cent advance in the benchmark Nifty 50. Samhi Hotels has a total market capitalisation of ₹4,098.95 crore. ==========
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