indiabulls,Hold Indian Hotels Company: Indiabulls Securities

Indiabulls Securities Research has come out with a research report on Indian Hotels Company (IHCL). The research firm has downgraded the stock from buy to hold, in its report dated November 5, 2009.

“For Q2FY10, the standalone revenues of IHCL plunged 11.7% yoy, but increased 9.0% qoq to Rs 2,859.2 million, while its reported net income plunged 77% yoy and 28% qoq to Rs 118.7 million, mainly due to sluggish inbound traffic and a dip in room rates. However, the company delivered a good operating performance as the EBITDA surged by 148% qoq to Rs 297.8 million, though still down by 67% yoy. With the commencement of the festive season and the impact of the global slowdown and swine flu now fading, the occupancy rates are expected to rise and support the hotels industry. Our DCF valuation suggests a fair value of Rs 83 for the company which implies a 7% upside potential from the CMP of Rs 79. Hence, we downgrade our rating from buy to hold”, says Indiabulls Securities.

indianachu : 04