ITC Hotels (ITCHOTEL IN): Buy: 1QFY27 steady, outlook improving

研报英文原文证据摘录

ITC Hotels (ITCHOTEL IN): Buy: 1QFY27 steady, outlook improving

er, the inbound international tourism recovery

remains muted so this growth was driven by domestic demand, well supported by 270.00

increased corporate business. Apart from that, the MICE business was very strong 195.00

due to more weddings and corporate events. July had a much higher number of

120.00

weddings vs last year. However, fresh geopolitical tension in the Middle East could 07/25 01/26 07/26

impact demand once again, so the company is focusing on promotions and TargetHigh: 254.75price: 208.00Low: 137.87 Current: 174.12

marketing campaigns as it targets to increase its contracted business. Source: LSEG IBES, HSBC estimates

Strong balance sheet supports healthy capital allocation: ITC Hotels has a

Achal Kumar*

strong balance sheet, with net cash of INR15bn, and that will allow it to capture Analyst, Global Transport

inorganic growth opportunities as they arrive without straining the balance sheet. The HSBC Securities and Capital Markets (India) Private Limited achalkumar@hsbc.co.in

company announced the acquisition of GHK Hospitality (Welcomhotel Ahmedabad) +91 80 4555 2751

with 130 keys, for INR1.55bn (debt and cash free), which implies EV/EBITDA of 15x. Harshit Mantri*, CFA

In 4QFY26, it acquired the Zuri hotel in Kerala, a very strong leisure market. While Analyst, Transport & Logistics, Hospitality HSBC Securities and Capital Markets (India) Private Limited

this hotel will be operational in 3QFY27, the company plans to upgrade it over the harshit.mantri@hsbc.co.in

+91 80 4550 3780

next couple of years, after which it could offer significant upside to the group’s EBITDA.

While its ROCE could remain under some pressure due to these acquisitions, ITC