Ventive Hospitality gets new 'Buy' from Motilal Oswal; 30% upside seen

Motilal Oswal initiated with a 'Buy' rating on Ventive Hospitality and a target price of ₹ 1,000, an upside of 30 per cent from Tuesday's close.

Motilal Oswal has initiated coverage on Ventive Hospitality Ltd. citing its inorganic expansion and expectations that adjusted profit after tax will more than double in the coming years. 

The brokerage initiated with a 'Buy' rating and a target price of ₹1,000, an upside of 30 per cent from Tuesday's close. 

Analysts highlight that from a single 415-key JW Marriott Pune in calendar year 2024, the company has expanded inorganically to a 2,140-key portfolio by the first half of financial year 2026 (H1FY26), following the addition of 11 hotels.  It also has a strong pipeline of over 1,500 keys, supported by robust demand in the hospitality sector. International operations contribute 54 per cent of hospitality revenue, while India operations account for 46 per cent, Motilal Oswal said. 

 

The brokerage noted that Ventive is scaling up operations in Pune and expanding into high-potential markets such as Bengaluru, Varanasi, Navi Mumbai and Mundra. Excluding Bengaluru, the company plans to significantly expand in other cities, with keys expected to rise from 104 in 2026 to 1,178 by FY30, implying a compound annual growth rate of 83 per cent.   ALSO READ | India-US trade deal 'incrementally' positive for RIL, says Nomura 

It added that Ventive is also diversifying its revenue base through a partnership with Soho House, marking its entry into membership-led hospitality. 

Motilal Oswal said Ventive's strong presence in Pune is well-positioned to benefit from major infrastructure upgrades, including the Navi Mumbai and proposed Purandar International Airports, the Pune Ring Road, the second Mumbai-Pune Expressway and the Messe Global Arena, Pune’s first purpose-built live event venue, launched in October 2025.  

Motilal Oswal highlighted that Ventive’s international portfolio contributes 54 per cent of hospitality revenue despite accounting for just 25 per cent of total keys, aided by strong average daily rates, a diversified customer base and limited new supply. The company is further expanding its international footprint with a 73-key Ritz-Carlton Reserve in Sri Lanka. The brokerage expects the international business to deliver a revenue compound annual growth rate of 21 per cent and an Ebitda compound annual growth rate of 27 per cent over FY25 to FY28.  ALSO READ | HAL share price tumbles 8% as firm likely misses AMCA fighter jet shortlist 

Overall, Motilal Oswal expects Ventive to deliver a compound annual growth rate of 21 per cent each in revenue and Ebitda over FY25 to FY28, driven by rapid multi-city expansion, diversification into membership-led hospitality, infrastructure-led demand in Pune and strong international performance. Adjusted profit after tax is expected to more than double over the period, supported by operating leverage, lower interest costs and a lower tax outgo, Motilal Oswal said.  ========== 

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