ICICI Securities Lifts ITC Hotels Target to Rs 235, Sees 35% Upside After Q1
ICICI Securities retains Buy on ITC Hotels and hikes target to Rs 235 from Rs 229 after Q1 FY27 posted 10% YoY revenue and 13% Ebitda growth. Brokerage flags H2 demand recovery and new hotel openings driving fee income, with 11% revenue and 14% Ebitda CAGR projected through FY29E.
What happened
ICICI Securities retains Buy on ITC Hotels with hiked target of Rs 235 after Q1 FY27 results showed 10% revenue and 13% Ebitda growth, projecting demand
Key facts
- 35% upside
- target Rs 235 from Rs 229
- net cash Rs 1,210 crore
- Sri Lanka NAV Rs 910 crore
- equity value Rs 48,900 crore
- 10% YoY revenue growth
- 13% YoY Ebitda growth
- 11% revenue CAGR FY26-29E
- 14% Ebitda CAGR
Why this matters
New hotel openings driving fee income point to a managed/asset-light expansion path worth scaling through partnerships and franchise deals.
What to watch
- H2 FY27 occupancy and ADR data confirming demand recovery
- New hotel opening/signing announcements boosting management-fee income
- Q2 FY27 Ebitda margin trajectory versus the 14% CAGR projection
- Peer hospitality results (Indian Hotels, EIH) setting sector sentiment
- Any change in brokerage consensus targets or rating shifts
- Other brokerages likely to revisit ITC Hotels estimates and align targets around Rs 220-240 range
- Management to guide on H2 pipeline, ADR/occupancy trends, and asset-light fee expansion on calls
- Institutional accumulation as post-demerger standalone hotel story gains coverage breadth