ITC

Hotels stock: Why is JM Financial bearish on hospitality company? Check target price

ITC Hotels Share Price Target : Leading brokerage firm JM Financial is bearish on ITC Hotels , which made its Dalal Street debut on January 29 this year post demerger from ITC. The brokerage has initiated SELL rating on ITC Hotels stock while citing stretched valuations and limited growth in the near-term. JM Financial noted that ITC Hotels has delivered a 22 per cent CAGR in EBITDA over FY23-25, driven by 15 per cent CAGR in RevPAR (Revenue Per Available Room) during the same period. However, the near-term growth remains restricted due to "limited incremental inventory getting commissioned till FY28E". According to the brokerage, ITC Hotels has an asset-light pipeline to further expand its footprint to over 200 hotels and 20,000 keys by 2030. It said that "while robust cash generation can enable it to accelerate growth by way of inorganic acquisitions, we believe such an outcome is adequately priced in at current valuations of 30x on FY27 earnings".