Shares of Indian Hotels rose 4% on May 16, the most in the past 15 weeks and the best performer among its peers. The volume of 3.49 million shares was 98% above the 20-day average of 1.76 million shares.

The company recently reported a 343% rise in consolidated net profit to Rs 328.27 crore for the March 2023 quarter, compared to Rs 74.2 crore in the same quarter of the previous fiscal. Operating income rose 86.4% to Rs 1,625.4 crore from Rs 872.1 crore a year earlier. The company’s full-year consolidated revenue and EBITDA margin hit record highs with PAT exceeding Rs 1,000 crore for the first time.

The company expects a double-digit RevPAR (revenue per available room) growth in the new financial year to Rs 7,750 per night in FY22-23, a 38 per cent increase from the pre-pandemic level of Rs 5,600 per night. It also kept its FY25 margin guidance at 33%.

Foreign brokerage Jefferies has a “buy” call on the company with a target price (TP) of Rs 425.  Domestic brokerage Motilal Oswal also has a “buy” call on the company with a target price of Rs 420.

Analysts currently have 15 buy, 4 hold and 1 sell recommendations on the stock, with an average price target of Rs 401.81, according to Bloomberg data.

The company’s market capitalisation has increased 62% in the past year and more than 17% in the past six months. The stock traded 3% higher at Rs 364 on the NSE at 11:43 am, while the benchmark Nifty traded 0.21% lower at 18,360.30.