Indian Hotels Stock Takes a Dive After Q4 Results
Indian Hotels stock witnessed a significant decline on Thursday, falling 5.1% to a low of Rs 577 during intra-day trading. This drop followed the company's release of its Q4 results.
By 11:30 AM, Indian Hotels stock was trading 4.5% lower at Rs 581 on the BSE, with a volume of around 2.63 lakh shares. In contrast, the S&P BSE Sensex was up 0.1% at 73,900.
While Indian Hotels stock faced a downturn, its peer group stocks exhibited a positive trend. Mahindra Hotels & Resort rose 2%, Chalet and EIH gained 1.5% each.
The Indian Hotels Company reported a 29.4% year-on-year (YoY) growth in consolidated net profit at Rs 438.33 crore for Q4FY24, compared to Rs 338.84 crore in Q4FY23. Total income for the quarter under review rose 18% YoY to Rs 1,951.46 crore.
Puneet Chhatwal, Managing Director & CEO of IHCL, expressed confidence that Indian Hotels will continue to deliver double-digit revenue growth with new businesses and the opening of 25 hotels in FY25. He also highlighted the introduction of the re-imagined Gateway, a full-service hotel offering in the upscale segment, targeting emerging micro markets in metros and Tier II and Tier III cities.
Despite the positive outlook, analysts at Prabhudas Lilladher believe that the Indian Hotels results were below consensus estimates. The brokerage firm, however, has no rating on the Indian Hotels stock.
Overall, Indian Hotels stock has outperformed on the bourses so far in 2024, rallying over 32%, compared to a 2.5% gain on the BSE benchmark index. However, the recent Q4 results and analyst views have led to a decline in the stock price.