Brokerage firm McWery has introduced coverage for hotel stocks in India. In Lemon Tree, Chalet Hotels And Indian hotels company limited (IHCL) are prominent. Brokerage shows good growth in the hospitality sector with a increasing demand for favorable market conditions and premium offers. McWery has given a target price of ₹ 210 per share for Shares of Lemon Tree Hotels. This is 60 percent higher than the turn on BSE on 12 February of the stock. The rating is kept “outperform”.
Brokerage believes that the hotel chains, known for premium and mid-segment offers, are in good condition to avail travel and tourism growing demand in India. McWery sees Lemon Tree Hotels as a top pick in the hospitality sector. This believes that strong brands and growing presence are the main factor for the company’s growth. On 13 February, Lemon Tree Hotels shares up by 3 percent.
What is expected for Chalet Hotels
For Chalet Hotels, McCweri has launched coverage with a “outperform” rating and a target price of ₹ 1,100 per share. This price share is 62% higher than a closed price on BSE on February 12. The broking firm said that Chalet Hotels is an important player in the Indian Hospitality Market, mainly a premium hotel and real estate portfolio in Tier-1 metro cities. McWery believes that the business of chalet hotels is ready for strong growth due to bounce in business demand and lack of hotel inventory in major cities. With an estimated revenue of 20–23% and Ebitda CAGR (compounded annual growth rate), chalet’s financial performance is expected to be strong in the coming years. On February 13, Chalet Hotels shares have a gain of about 1 percent.
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Indian Hotels Company Share may jump 15 percent
McCweri has also started coverage on Indian Hotels Company shares. The rating is kept “neutral” and the target price is ₹ 840 per share. This is about 15 percent more than the closing price of the share on BSE on 12 February. Although the company is well -established in India and globally, McCweri is cautious about its short term prospects. Brokerage believes that the share price is appropriate at current levels. On February 13, the Indian Hotels Company shares up by 1 percent.
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