Royal Orchid Hotels is a buy for 37% upside gain
Posted: Sun Nov 24, 2024 6:00 pm
ROHL will immensely benefit from current upcycle. It is going through investment phase & taking steps in right direction by refurbishing existing inventory, shifting focus to value & hiring right talent. Valuation gap with peers narrowing. TP ₹431 (+37%)
"ROHL is going through an investment phase and is taking steps in the right direction by: i) refurbishing its existing inventory, ii) shifting its focus from volume to value (expansion in the five-star segment), and iii) hiring the right talent. These changes will help ROHL to immensely benefit from the current upcycle. We see the valuation gap with peers narrowing as the restructuring plays out. As we are cognizant of near-term margin pressures, we have revised our TP to INR431 (12x FY26E EV/EBITDA) from INR477 earlier. Maintain ‘BUY’."
"ROHL is going through an investment phase and is taking steps in the right direction by: i) refurbishing its existing inventory, ii) shifting its focus from volume to value (expansion in the five-star segment), and iii) hiring the right talent. These changes will help ROHL to immensely benefit from the current upcycle. We see the valuation gap with peers narrowing as the restructuring plays out. As we are cognizant of near-term margin pressures, we have revised our TP to INR431 (12x FY26E EV/EBITDA) from INR477 earlier. Maintain ‘BUY’."