The recent new unit ITC Hotels shares closed up on February 12. International brokerage firm Jefferies has started coverage regarding this stock. The brokerage firm estimates that the bull run of the stock may see an increase of up to 63 % in its price.
The brokerage firm has rated the company’s shares ‘by’ and for this the target price has fixed Rs 240 per share, which is about 40 % above the current price. Jefferies says that this stock can increase to Rs 280 per share in the bull case, which is 63 % above the current level. The brokerage firm is estimated that during FY 2024-27, the revenue of ITC Hotels may increase at the rate of 15 % CAGR. The firm is steadily increasing the portfolio of its ownership hotels.
The portfolio of ITC Hotels currently has 25 hotels, including 15 ITC brand hotels, 9 welcome hotels and 1 Fortoon Hotel. The asset mix of ITC Hotels is currently balanced. The company’s 45 % hotels are of their own, while she is managing 55 %. In addition, the firm’s recent capital experiences projects have reduced the returns of business.
ITC Hotels Management Contracts are increasing the number of rooms through the asset light route and the company intends to increase the number of rooms from 13,000 to 18,000 by 2029/30. Jefferies says that in the next 5 years, the percentage of premium rooms of the company will increase from 30% to 42%, so its product profile will also be better. As a result, Jeffers is expected to increase the demand for travel and tourism during the financial year 2024 to 2027 and the company’s great growth in the next few years.
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