Buy TAJGVK hotels with upside potential of 40%

TAJGVK Hotels is a high-end hotel company based in Hyderabad, with 67% of revenue coming from the city (before Covid).

ICICI Direct sees gains of nearly 40% on TAJGVK Hotels stock and has set a price target of Rs 210, against the current market price of Rs 150.

Announces its first earnings after the March 2020 quarter

According to the brokerage, with a robust rebound in income and managed fixed expenses, the company reported its first quarterly net profit of Rs 1.2 crore after Q4FY20 to Q2FY22. Starting in S2FY22, we expect a strong pull in premium segment hotel room revenue. In addition, the current crisis may result in a 15-18% reduction in room stock, which bodes well for the business in the long run. In fiscal year 21-23E, we anticipate a robust 79.8% revenue CAGR. In fiscal 23E, we estimate that the business will recover to 94% of pre-Covid levels, with EBITDA exceeding pre-Covid levels. In fiscal 23E, margins are expected to exceed 26%, with potential to increase by 30% or more.

Target and valuation

“On a replacement basis, the stock is trading at EV / chamber of Rs 1 crore, with a significant discount from current replacement costs. We remain positive on the company and maintain our BUY rating Target price and valuation: we are valuing the company at Rs 210 ie18x FY23E EV / EBITDA, ”the brokerage said.

Buy Indian hotels with 21% upside potential

Buy Indian hotels with 21% upside potential

Through hotels owned / managed across the US, UK, Africa, Sri Lanka, UAE and Maldives, Indian Hotels has a privileged presence in the luxury market.

Leisure is rebounding; business trip to follow soon

ICICI Direct is seeing gains of nearly 21% on Indian Hotels stock and has set a price target of Rs 250, against the current market price of Rs 206.

T2FY22 results

In T2FY22, Indian hotels experienced a strong resurgence, with revenues reaching 72% of pre-Covid levels. Indian hotel revenues increased 184% year-on-year and 111% quarter-on-quarter to reach Rs 8.4 crore in T2FY22. EBITDA was Rs 72.8 crore, while the net loss was Rs 120.6 crore, compared to a loss of Rs 230 crore last year and a loss of Rs 277 crore the previous quarter.

Target and valuation

“In addition to improving the outlook, the company is also focused on achieving more efficiency through cost optimization. We remain positive on the company and maintain our PURCHASE target price and valuation rating: we value IHCL at Rs 250, or 31x FY23E EV / EBITDA, ”the brokerage said.

Buy IEX with 19% upside potential

Buy IEX with 19% upside potential

The Indian Energy Exchange (IEX) is the country’s main electricity exchange, facilitating the trading of electricity.

Solid revenues supported by high EBITDA margins

ICICI Direct sees gains of nearly 19% on Indian Energy Exchange stock and has set a price target of Rs 910, against the current market price of Rs 764.

T2FY22 results:

The IEX announced strong results for T2FY22.

At Rs 110.4 crore, revenue grew 55.6% year over year and 21.3% quarter over quarter. In the second quarter of fiscal 22, EBITDA stood at Rs 95 crore, up 71.4% year-on-year, with margins of 86.1%. The PAT as a result was 77.4 crore in T2FY22, up 74.6% year-on-year and 24.6% QoQ.

Target and valuation

“Over the past year, IEX has remained richly valued given its healthy balance sheet, near monopoly and bright future prospects. We continue to remain positive and maintain our PURCHASE rating on the market. ‘Stock Price and valuation target: We value IEX at Rs 910 or 57x P / E on FY24E EPS, “the brokerage said.

Disclaimer

Disclaimer

The above actions are taken from the brokerage report of ICICI Securities. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.