By Aditya Raghunath
Investing.com -- Indian Hotels Company Limited (IHCL) (NS: IHTL ) shares are currently trading at Rs 125. The stock has seen its fair share of volatility in the last year but it has been relatively stable since December 2020 when it was trading at Rs 120. It has managed to hold on to this level for over three months. Is it time for the stock to take off?
Brokerages seem to think so. Nirmal Bang has given IHC a target of Rs 164. It estimates that overall occupancy for the hotel chain could be around 55% in Q4 FY21. Leisure destinations like Goa had occupancy in excess of 85% in January and February. A key reason for this has been the wedding season in India. There are several restrictions on international travel and this has meant a lot of tourists are flocking to domestic ones. NCR, Mumbai, and Bengaluru, where IHC has around 25% of its room inventory, continue to be under pressure.
Sharekhan has a target of Rs 155 for the stock. It says, “Hotel industry set for a strong revival in FY2022/23 as foreign tourist arrivals regain momentum. As IHCL has a strong room inventory and stable balance sheet among peers, we recommend a buy.”
Motilal Oswal (NS: MOFS ) has a target price of Rs 143 on IHCL while ICICI Direct says the stock can reach Rs 150.
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