IHCL has reported impressive Q3 results in FY24, achieving substantial double-digit revenue growth and improved margins due to operational efficiency. The hotel industry is experiencing a sustained pricing surge after the challenges posed by COVID-19, and this trend is expected to continue in the medium term, driven by growing demand outpacing supply.
IHCL is well-positioned for growth with robust plans for inventory expansion and the potential for inorganic opportunities. The company’s strong financial standing, with a net cash of Rs 1,550 crore as of December 2023, provides the flexibility to seize growth prospects.
Backed by a strong brand, a heritage spanning over a century, and a diverse product portfolio across various brands and price ranges, IHCL has established itself as a reliable player in the market. The IHCL stock has nearly doubled since our recommendation in February 2023, standing out as one of the top-performing hotel stocks over the past year. We maintain a positive outlook on the stock.