HSBC has initiated coverage on Ventive Hospitality with a ‘Buy’ rating and a target price of ₹854, citing a robust recovery underway and the company’s strong balance sheet as key positives. The company operates a diversified asset base with 11 hotels across India and the Maldives along with four annuity-yielding assets, including office buildings and malls in Pune.
While the company had earlier been plagued by underperformance, HSBC believes Ventive is catching up fast, aided by improving occupancy trends and better operating leverage.
Key strengths include healthy free cash flow generation and a well-capitalized balance sheet. However, HSBC flagged risks around the company’s limited growth pipeline and execution history, which could weigh on the stock if underperformance continues.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
