These stocks climbed 42% in a month, would you bet, know what the brokerage says

Multibagger Stock: Shares of Indian Hotels Company Limited (IHCL), which operates the Taj Group of Hotels, rose 6 per cent to an all-time high of Rs 218.90 on the BSE on Tuesday. Hotel stocks are improving rapidly ahead of the festive season. In the last one month, the stock of IHCL rose by 42 per cent from Rs 154 on September 13 to around Rs 219 at the close of the market today. It has gained 78 per cent since the beginning of the year. The shares are higher than the 5-day, 10-day, 20-day, 50-day, 100-day and 200-day moving averages. The market cap of IHCL also increased to Rs 25,438.24 crore.

What to say about the brokerage firm?
ICICI Direct noted that the company is witnessing a strong growth in demand for rooms in leisure destinations. In some places, revenue per occupied room (RevPAR) has exceeded pre-pandemic levels, indicating a return to travel. Moreover, the average duration of stay at IHCL properties has also increased to 5-7 days as compared to 2-4 days earlier.

The brokerage firm said, “We expect a healthy CAGR of 62.9 per cent in revenue in FY21-23E. With EBITDA crossing pre-Covid levels in FY23E as well as pre-Covid in FY23E The recovery of 93 per cent of the level is expected. The margin in FY23E has been seen higher than FY23E percentage.”

The brokerage said in its report, and has the potential to expand by over 30 per cent, improve cash flow, equity infusion and disinvestment of non-core assets to manage debt at a comfortable level. Motiwal Oswal said “We expect a gradual/fast recovery on a low basis in FY22E/FY23E, ARR improving once things normalize, engagements improving, positivity in cost rationalization efforts in FY21, Banquet/Conference” Higher earnings from the restart, and management contracts will drive F&B earnings.”

IHCL reported a consolidated net loss of Rs 270.05 crore in Q1 FY22 as against Rs 266.93 crore in Q1 FY21. Net sales grew 139.9 per cent year-on-year to Rs 344.55 crore in Q1 FY22.

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