Shares of Schloss Bangalore Ltd., the parent of The Leela Hotels, rose 4.18% on Tuesday, July 8, trading at ₹423.55, after two major brokerages initiated coverage with bullish outlooks.
BOFA Securities initiated coverage with a Buy rating and a price target of ₹520, citing strong industry tailwinds, a robust portfolio of five iconic owned hotels, and medium-term expansion potential. The brokerage expects revenue and EBITDA to grow at a CAGR of 12% and 14% respectively, while earnings are projected to rise over 90% from FY25 to FY28, helped by lower net debt and steady execution.
Morgan Stanley also initiated coverage with an Overweight rating and a higher price target of ₹549. The brokerage highlighted the company’s nearly net-debt-free balance sheet, premium assets, and rising demand for luxury hospitality. Morgan Stanley estimates EBITDA growth of 12% annually through FY27, along with a nine-fold jump in net income driven by falling interest costs.
Schloss Bangalore, which listed on the stock market on June 2, currently operates 12 properties under The Leela brand, with five wholly owned hotels in Bengaluru, Chennai, New Delhi, Jaipur, and Udaipur. For FY25, the company reported a profit of ₹47.66 crore and revenue of ₹1,406.56 crore, improving from a net loss of ₹2.13 crore in FY24.
The stock’s gain follows a weak listing in June but reflects investor optimism on the back of positive institutional coverage and improving financial metrics.
