Shares of Indian Hotels Company slumped sharply on Thursday as the company posted its March quarter results.

What Happened: In the March quarter, the parent company of the Taj Group of hotels reported a 27% rise in net profit, reaching ₹417.76 crore compared to ₹328.27 crore in the same period last year. Additionally, the hospitality giant saw a 17.2% increase in revenue, climbing to ₹1,905.34 crore from ₹1,625.43 crore in the corresponding quarter last year.

Analyst Reactions: Emkay maintained its “add” rating for the stock raising the price target to ₹615 from ₹575. The analysts noted that the company posted in-line consolidated revenue and margin thanks to standalone occupancy of 79.1%. The brokerage further added that it likes the hospitality giant’s diversified topline, operational efficiency, and debt-free balance sheet.

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Kotak Securities also maintained its “add” rating for the stock with a target price of ₹640. The brokerage highlighted that during the Jan-March period, standalone occupancy (domestic) witnessed a year-on-year increase of 440 basis points (bps) and a quarter-on-quarter increase of 230 bps, reaching 79.1%. However, standalone earnings fell short of the brokerage’s estimates due to lower non-room revenues.

Investec, on the other hand, maintained its “hold” rating for the stock but raised that price target to ₹626 from ₹570. The brokerage said that the company continues to benefit from the upcycle in demand due to its pan-India presence.

Price Action: Indian Hotels Company’s share price was up 2.23% to trade at ₹594.45 as the markets opened on Thursday.

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