Shares of Indian Hotels Company Ltd (IHCL) gained over 2% in early trade on February 21 after Morgan Stanley reaffirmed its ‘Overweight’ stance on the stock, maintaining a target price of ₹856 per share. The target indicates an upside potential of 12.5% from the previous closing price of ₹761 on the National Stock Exchange (NSE).
Morgan Stanley analysts remain bullish on the hospitality sector, citing strong demand recovery in domestic and international tourism. The brokerage noted that Mumbai’s hospitality market continues to be a key driver, with Revenue Per Available Room (RevPAR) growth at 21% in Mumbai and Delhi in January 2025, up from 18% and 11% YoY, respectively.
Q3 FY25 Performance Highlights
- Revenue: ₹2,592 crore (up 29% YoY)
- EBITDA: ₹1,020 crore (up 32% YoY)
- EBITDA Margin: 39.4% (expanded by 80 bps)
- Profit After Tax (PAT): ₹582 crore (up 29% YoY)
Despite a 13% decline in IHCL’s stock price since the start of 2025, Morgan Stanley expects strong long-term growth, supported by robust demand, rising room rates, and expanding margins in the hospitality sector. The brokerage remains optimistic about IHCL’s leadership position in India’s premium hospitality market, with key properties in high-demand locations driving sustained earnings growth.
