Indian Hotels share price declines 4% post Q4 results. Should you buy or sell this Rakesh Jhunjhunwala portfolio stock?

Stock Market Today: Indian Hotels share price declined more than 4% in the morning trade on Tuesday, following the announcement of the Q4 FY25 results. The stock is also part of Rakesh Jhunjhunwala and Associates' portfolio and holdings. 

Indian Hotels share price opened at ₹812.80, higher than its previous close of ₹801.80 on the BSE. However, the Tata group stock soon erased gains and slipped to the day's low of ₹765.50, down 4.5%.

Indian Hotels Company Ltd Q4 Results

On Monday, May 5, Indian Hotels Company (IHCL), the Rakesh Jhunjhunwala portfolio stock, announced that its standalone net profit for the March quarter (Q4 FY25) increased by 30.4% year-over-year (YoY) to ₹481.20 crore. The company's net profit for the same period in the previous year was ₹369.08 crore. The company's profit increased 2.7% sequentially from ₹468.77 crore in Q3 FY25.

In comparison to ₹1,341.65 crore in the same period last year and ₹1,473.61 crore in the previous quarter, India Hotels' Q4 FY25 revenue from operations came in at ₹1,476.33 crore, rising 10% YoY but remaining flat on a sequential basis.

Indian Hotels Company's consolidated net profit increased by 27% YoY to ₹522.30 crore from ₹417.76 crore in Q4 FY24, while its operating revenue grew 27% YoY to ₹2,425.14 crore from ₹1,905.34 crore in the same quarter last year.

Indian Hotels: Analyst Views

Motilal Oswal Financial Services post Q4 results feels that the outlook continues to remain strong for Indian Hotels, led by healthy traction in both the core business and as well as the new and reimagined businesses.

MOFSL expects the strong momentum to continue in the medium term, led by significant potential in FTA growth. Also, over 70 wedding dates are spread evenly throughout the year. Further, a strong room addition pipeline in management hotels (15,900 rooms) should drive growth, according to MOFSL. 

The large planned renovations in key assets such as Taj Palace (Delhi), Fort Aguada in Goa, St James in the UK, and Taj Calcutta, also add to the growth outlook. It is the increased domestic travel led by social events that should aid growth, as per the brokerage. MOFSL has a target price of ₹940 for Indian Hotels shares.

As per Jefferies India, Indian Hotels reported a strong and inline Q4, with revenue, EBITDA and net profit growth of 27%, 30% and 26% YoY, respectively. Hotel segment revenue and EBITDA grew 13% and 20%, respectively. 

Indian Hotels' management shared views on the FY26 outlook, saying that the sector outlook remains positive. It continued to guide for double-digit revenue growth (17% growth in April), driven by strong same-store performance, sustained momentum in new business and 30 new hotel openings. 

Though Jefferies has slightly tweaked their estimates and price target, they expect EBITDA and net profit to grow at a compounded annual rate (CAGR) of 16-18% over FY25-FY28. Jefferies has retained a ‘buy’ rating for the stock with a price target of ₹980, down from ₹1000 earlier.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.