Indian Hotels figures in the top five gainers on the bourses currently. The stock price rose 5% to Rs.139.70 and continues to trade around the same levels.
The sudden interest in the stock can be explained by foreign brokerage house putting out a report on Indian Hotels. It has maintained a “buy” and given a price target of Rs.170.
UBS is very bullish about the stock saying that the market is ignoring the prolonged upcycle scenario. It foresees a much leaner and more efficient company, which will gain due to its location and lower competition in its segments.
UBS stated in the report that it expects operating income to compound at 17% till FY20 and margins to improve by 25%.
Meanwhile, Ginger Hotels, the budget hotel chain of Indian Hotels Company, is undertaking a repositioning exercise in a bid to garner a greater share of the mid market segment. Brand strategy, brand design and digital firm DY Works is working on repositioning of the brand in the market