Taj Hotels, a jewel in the crown of Indian hospitality, has been a beacon of luxury and world-class service for over a century. As a part of the prestigious Tata Group, Taj Hotels is known to provide impeccable service, operating 100 hotels across the globe.

From bustling city centres to tranquil beachfront and serene mountain resorts, Taj Hotels offers a unique blend of traditional Indian hospitality and contemporary luxury. In this article, we delve deeper into the rich tapestry of Taj Hotels’ history, its financial health, and how you can participate in its growth story through the stock market.

Taj Hotels Company History

The legacy of Taj Hotels dates back to 1903 when Jamsetji Tata, the founder of the Tata Group, opened the doors of the Taj Mahal Palace in Mumbai. This iconic hotel quickly became a landmark and set the standard for Indian hospitality.

Over the years, Taj Hotels has expanded its footprint globally, offering a unique blend of rich Indian heritage and modern luxury. Today, the brand operates in several countries, offering a range of accommodations from luxury resorts to urban retreats.

How To Buy Taj Hotels Shares

Taj Hotels is not directly listed on the stock market, so you will not be able to invest in Taj Hotel shares or check the Taj Hotel share price. But, its parent entity, Indian Hotels Company, is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. So a Google search for Taj Hotel share price will usually give you results related to IHCL share price.

So, while you can not buy Taj Hotel shares, you can buy shares of IHCL. While IHCL operates several hotel brands like Vivanta, Ginger and Seleqtions, Taj Hotel is its flagship brand. It accounts for over 54% of the company’s total operations rooms portfolio. As of April 2023, Taj has over 11,000 operational rooms across the globe.

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Taj Hotels Financials

While Taj Hotels itself isn’t listed, its parent company, Indian Hotels Company, is. The financial performance of Indian Hotels Company is a reflection of Taj Hotels’ performance as it is the flagship brand.

Indian Hotels Company’s consolidated net profit stood at ₹167 crore, marking a 37% year-on-year (YoY) growth. The company’s revenue for the quarter ended September 30, 2023, showed a of 18% YoY increase, reaching ₹1,481 crore.

Past Three Years

Here are the consolidated financials of the Tata Group company for the past four quarters.

Year Ending	Net Profit	EBITDA	Revenue
March 2023	1,002.6	1,804.6	5,948.8
March 2022	-247.7	404.8	3,211.4
March 2021	-720.1	-361.8	1,739.9

The hospitality giant had a few rough years due to the Covid pandemic but as evident from the numbers above it is on a path to recovery.

Factors Affecting Taj Hotel Share Price

Several factors can influence the share price of the Indian Hotels Company. These include:

1. Performance of the Hospitality Industry: The overall health of the hospitality industry directly impacts the performance of Taj Hotels. Factors such as travel trends, consumer spending, and global events can significantly influence the industry.
2. Economic Conditions: Macroeconomic conditions, including GDP growth, inflation rates, and consumer confidence, can affect the demand for luxury hospitality services and, in turn, impact the company’s share price.
3. Competition: The hospitality industry is highly competitive. The performance of competitors, their strategies, and market share can influence the Indian Hotels Company’s share price.
4. Government Regulations: Changes in government policies related to the hospitality and tourism industry can impact operations and profitability.
5. Global Events: Events like the COVID-19 pandemic can have a significant effect on the hospitality industry, affecting travel and occupancy rates.

Analyst Calls

After the company’s strong performance in the September quarter, many brokerages remained bullish on the stock. Here are the latest analyst calls on the stock.

Brokers/Analysts	Rating	Price Target
Motilal Oswal	Buy	₹480
ICICI Securities	Buy	₹458
HDFC Securities	Add	₹398
Sharekhan	Buy	₹492
IDBI Capital	Buy	₹450

Alternate Investment Ideas: Competitors

If you’re interested in the hospitality industry, there are other investment options to consider. Competitors like EIH Limited (Oberoi Hotels & Resorts) and ITC Hotels are also listed on the Indian stock exchanges.

EIH Limited, the flagship company of The Oberoi Group, is one of the leading hospitality chains in India. Oberoi Hotels & Resorts is recognized for providing some of the finest luxury hotels since the 1930s.

ITC Hotels is another major player in the Indian hospitality industry. A part of the multi-business conglomerate ITC Limited, ITC Hotels has over 100 hotels in more than 70 destinations. ITC Limited’s shares are traded on the BSE and NSE, and the performance of its hotel division contributes to the company’s overall financials.

Investing in these companies can be an alternative way to gain exposure to the Indian hospitality industry. However, like any investment, these come with their own set of risks and rewards. Therefore, thorough research and possibly consultation with a financial advisor are recommended before making investment decisions.

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