Shares of Indian Hotels Company climbed over 4% on Thursday, October 22, after the hospitality company reported a strong set of results for the September quarter, with net profit rising 19.5% year-on-year and revenue increasing 21.7%.
The stock was trading at Rs 783.20, up Rs 30.20, or 4.01%, at 12:54 pm on the NSE.
Indian Hotels reported a net profit of Rs 380 crore for the September quarter, while revenue rose to Rs 2,484 crore. EBITDA increased 23.9% year-on-year.
Nomura maintained its 'Buy' rating on Indian Hotels and raised its target price to Rs 850, following the robust quarterly performance. In its October 21 research note, titled "Raise TP to INR850", the brokerage said it expects "mid-high-teens consolidated EBITDA growth in 2HFY27F and FY28F".
Nomura raised its FY27 and FY28 earnings per share estimates by 3% and 5%, respectively. It increased its FY27 forecast for standalone revenue per available room (RevPAR) growth to 15% year-on-year from 10%, and its standalone EBITDA margin estimate to 46% from 44%. The revised estimates also factor in the consolidation of Oriental Hotel in FY28.