Indian Hotels shares decline over 2% as benchmark indices slide - Should you buy?

Shares of the Indian Hotels Company Ltd declined over 2 per cent to touch the day's low of Rs 593.40 on the BSE as equity benchmark indices tanked in early trade on Monday, with the Sensex tumbling 929.74 points, amid the ongoing conflict in the Middle East and weak trends from global markets.

The stock of Indian Hotels, which has a market cap of Rs 85,171 crore, has a 52-week low price of Rs 326.05 and a high of Rs 622.25.

Indian Hotels Share Price Target
 

• Maintain buy, Target raised to Rs 715 from Rs 500
   
• Operating & Financial leverage accelerate earnings
   
• Current re-rating is sustainable with earnings upgrades and as the market recognises the value of embedded optionality.
   
• Raise earnings forecasts by 3 per cent/9 per cent for FY25/26 to account for better average room rates and management contract revenue which aid in higher operating margins.

Meanwhile, 74 per cent of the stocks declined on Monday and only 22 per cent of the stocks advanced. As many as 2924 stocks are declining while only 886 are advancing.

While the Sensex is down more than 500 points, the extent of the fall in the broader markets is far more accentuated as the advance-decline ratio suggests.

While the benchmark Sensex is down 0.7 per cent, the BSE IPO index is down sharply by 1.77 per cent.

Similarly, the financial services index is down 1.2 per cent, the IT index is down 1.3 per cent, Services index is down 1.6 per cent. There is selling pressure in the mid-caps stocks with the BSE Small Cap Select Index down 1.2 per cent.