Global brokerage HSBC has reiterated its positive stance on the Indian travel and hotel sector, highlighting strong performance in Q4FY25 and a stable outlook going forward. The firm expects the segment to continue benefiting from favorable demand-supply dynamics and seasonal tailwinds.
HSBC said the sector enjoyed exceptionally strong trading in Q4, aided by events like the Maha Kumbh and tight hotel room supply across key locations. Looking beyond Q4, the brokerage does not foresee any major headwinds for the hotel industry.
Among stocks, HSBC maintained a ‘Buy’ rating on InterGlobe Aviation (IndiGo) and raised its target price to ₹5,975 per share, citing resilience in yields and relief from softer oil prices, which could help mitigate rising cost pressures.
Similarly, it retained a ‘Buy’ call on Indian Hotels, lifting the target price to ₹944 per share, supported by continued strength in room demand, limited new supply, and robust operational metrics.
However, SpiceJet shares remain under pressure, with HSBC maintaining a ‘Reduce’ rating and a target price of ₹25.10 per share, citing rising uncertainty surrounding the airline’s operations and financial health.
HSBC believes the travel & leisure sector remains structurally strong and well-positioned to navigate short-term volatility, particularly in the premium and organised segments.
Disclaimer: This article is based on HSBC’s research note and does not represent the views of the author or the publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
