The Indian Hotels Company Ltd. (IHCL) is one of Asia's largest Indian hospitality company by market capitalization.Market Capitalisation
The market capitalisation of Indian Hotels Company Ltd. as on 16 August 2018 is around Rs.14,750 crore.
Company's Wealth and Recent Performance
The key financial highlights of the companies performance for the Q1 FY 2018-19, ended 30 June 2018 are as follows:
- The Profit After Tax (PAT) stood at Rs.15 crore.
- Revenue growth was at 26% EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).
- The RevPAR increased by about 6% globally.
- The company signed 6 new hotels with an inventory of approximately 800 rooms across all its brands in key locations in India as well as internationally.
- IHCL signed a deal with Hayre Group to open Vivanta hotel at Heathrow Airport in London. Located across from Terminals 1, 2 and 3 at Heathrow Airport, the new Vivanta hotel is slated to open in 2021. The hotel will have approximately 108 rooms, an all-day-diner, a bar and lounge, gym as well as banqueting and meeting space facilities.
- IHCL also signed its first hotel in Saudi Arabia. Located in Makkah, the Taj branded hotel is scheduled to open in January 2023, with approximately 340 rooms.
- IHCL’s iconic brand Taj was awarded the Best Hospitality Corporate Governance Award in India.
The key financial highlights of the companies performance for the FY 2017-18, ended 31 March 2018 are as follows:
- The consolidated revenues of the company stood at Rs 4,165 crore, up 4% while the PAT was at Rs.101 crore.
- The operating EBITDA stood at Rs.670 crore, up 11%.
- A dividend of 40% was declared for the entire financial year amounting to Rs 0.4 per share. It reported an increase over the previous dividend payouts of 35% and 30% in 2016-17 and 2015-2016, respectively.
- The company’s debt to equity ratio stood at 0.45.
The key financial highlights of the companies performance for the Q4 FY 2017-18, ended 31 March 2018 are as follows:
- The consolidated net profit reported an increase by 70.42% at Rs.79.30 crore as against Rs.46.53 crore in the same Q4 FY 2016-17.
- The total income stood at Rs.1,154.02, up by 8% as compared with Rs 1,069.23 crore for the same period last year.
- The growth is sales reported an increase of 9%.
- The operating EBITDA growth was up by 38%.
- The PAT reported an increase of 89%.
Indian Hotels Company Ltd. Stock Trends in 2018
- The opening price of the Indian Hotels Company Ltd. on NSE on 1 January 2018 was Rs.117. The scrip was around Rs.155 by the end of the month. It remained stable in the month of February. The price of the stock fell in March and ended the month at Rs.128. The scrip picked up the pace in April and was at around Rs.150 by the end of the month.
- In the month of May, the scrip was stable and changed marginally. It declined by a few points towards the end of June and stood at Rs.128. The scrip did not change much in July as well. The opening price of the stock was Rs.124 as on 16 August 2018.
Indian Hotels Company Ltd. Stock Trends in 2016 and 2017
- The opening price of the stock on 1 January 2016 was 117 on NSE. The scrip declined marginally by the end of the month. In February, the scrip declined by around 15 points and ended the month at Rs.99. The price of the stock did not change much in March as well as April.
- The opening price of the stock in May was Rs.105 and increased marginally by the end of the month. The scrip was up by 15 points and ended the month of June at Rs.130. In July and August, the price of the stock was stable.
- In September, the stock price stood at Rs.127 by the end of the month. The scrip fell in October by 15 points and ended the month at Rs.117. It continued to decrease further in the month of November and stood at Rs.105 toward the end. At the end of December, the price of the stock was at Rs.97.
- At the beginning of January 2017, the price of the stock was Rs.98 and increased gradually towards the end of the month. The scrip continued to increase in February by around 25 points and ended the month at Rs.124. In March and April, the stock price was stable.
- The price of the stock in May gained strength and crossed Rs.140 however, it did not change much in June. In July, the scrip declined by around points and ended the month at Rs.122. The price of the stock fell by around 12 points in August and stood at Rs.116.
- In September as well as October, the scrip did not witness any change and was pretty stable. The price of the stock increased towards the end of November and ended the month at Rs.123. In December, the scrip was stable and stood at Rs.118 towards the end.
Should you invest in Indian Hotels Company Ltd.?
- The IHCL reported a strong growth in Q1 FY 2018-19 and had an impressive FY 2017-18. The company has signed several new hotel deals in India as well as overseas.
- The stock price of the IHCL has not seen a growth in the past two years. The price of the stock in January 2016 and January 2018 was the same. It is strongly advised that you do strong research before investing your hard-earned money in the stock market as it is a risky and uncertain form of investment. You can instead look at mutual funds as an alternate option for investment.
The Indian Hotels Company (IHCL) along with its subsidiaries are collectively known as Taj Group. The iconic Taj Mahal Palace that was opened in 1903, is the company's first property that was incorporated by Jamsetji Tata, of the Tata group. The main 3 brands that come under the Taj Group are, Taj, Vivanta, and The Gateway. The Taj Group comprises 108 hotels in 63 locations, including 25 Ginger hotels across India. Moreover, the Group has a total of 17 international hotels across the Middle East, Maldives, Malaysia, Australia, Africa, UK, US, Bhutan and Sri Lanka. Some of the most significant included in the Taj portfolio is The Pierre hotel on New York's Fifth Avenue, the Taj Cape Town in South Africa and the latest Taj Falaknuma Palace in Hyderabad.
Management of the Company
Mr.Puneet Chhatwal - Managing Director & Chief Executive Officer
Mr. Puneet Chhatwal joined IHCL as the Managing Director and Chief Executive Officer in November 2017. An MBA in Hospitality from ESSEC, Paris, Puneet has an experience of more than 30 years where played important leadership roles at acclaimed hotel groups in Europe and North America. Before joining IHCL, Puneet was the CEO as well as the member of the Executive Board of Steigenberger Hotels AG – Deutsche Hospitality. He was also the Chief Development Officer of The Rezidor Hotel Group – Carlson Hotels Worldwide. Puneet is a graduate of both Delhi University and Institute of Hotel Management, Delhi. He has completed the Advanced Management Program from INSEAD and has
Mr.Giridhar Sanjeevi - Executive Vice President and Chief Financial Officer
Giridhar has an experience of more than three decades where he held important roles in businesses like finance, commercial, consumer, retail, pharma, and so on. Prior to IHCL he was working with Merck & Co, as the CFO for South Asia and the Business Head for Pakistan, Bangladesh, Sri Lanka and Nepal. He has also worked with ITC Ltd where he handled several businesses in India and the Middle East. He won the Most Influential CFOs of India award from CIMA in 2015 and 2016. Giri has significant experience in business and financial transformation. Giri has also built experience in Retail through stints in Shoppers Stop and Aditya Birla Group, where he was the CFO. A Chartered Accountant (An All India Ranker), Giri is also an MBA from IIM Ahmedabad.
Listings in NSE, BSE, and Indices
The stocks of Indian Hotels Company Ltd. are available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and Bombay Stock Exchange (BSE).
Sector: Finance - Hospitality
The company forms a part of important indices like:
- Nifty Nifty 500
- Nifty 200
- Nifty Full Midcap 100
- Nifty LargeMidcap 250
- Nifty Midcap 100
- Nifty Midcap 150
- S&P BSE 150
- S&P BSE 200
- S&P BSE 250
Mumbai 400 001
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