Indian Hotels shares jumped on Friday after posting strong Q2 results.

What Happened: Indian Hotels posted a 232% year-on-year jump in net profit to ₹554.58 crore powered by a  ₹307.36 crore one-off gain from the consolidation of TajSATS. Without the one-time gain, the company's bottom line would have grown 48% year on year to ₹247 crore.

The Tata Group company's operational revenue surged 27.4% from the previous year to ₹1,826.12 crore.

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Brokerage Views: Jefferies maintained a "buy" call with a target price of ₹785. The company posted strong Q2 results, the brokerage noted. The research firm said that further acceleration in growth is possible in H2FY25. The global brokerage firm said that the hotel business continues to benefit from cyclical tailwinds of supply-demand mismatch. 

The brokerage firm raised the like-for-like EBITDA and profit after tax estimates by 2%-4% and factored in stronger revenue per average room of 10% in FY25 compared to 8% earlier. 

Motilal Oswal also gave a "buy" call with a target price of ₹770. Indian Hotels maintained its double-digit revenue guidance with new and reimagined businesses to accelerate growth trajectory, the research firm said.

Motilal expects a stronger performance in the second half of FY25 with 30% year-on-year higher wedding dates, an increase in foreign tourist arrival and healthy traction in the meeting, incentives, conferences and exhibitions (MICE) segment caused by convention centres and favourable demand-supply dynamics. 

Price Action: Shares of Indian Hotels rose 4.45% to ₹714.25 on Friday. 

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