Ventive Hospitality’s domestic business holds up; Motilal Oswal retains Buy, ₹750 target
Motilal Oswal has retained its Buy rating and ₹750 target price on Ventive Hospitality after its June-quarter review. The brokerage said domestic operations remained resilient, partly offsetting weaker overseas performance.
What happened
Motilal Oswal retained Buy ratings on Bharti Hexacom, Happy Forgings and Ventive Hospitality. Ventive Hospitality's domestic operations remained resilient
Key facts
- Bharti Hexacom target price raised to Rs 2,050 from Rs 1,875
- Happy Forgings target price: Rs 2,095
- Ventive Hospitality target price: Rs 750
Why this matters
The domestic-overseas performance gap may make India-focused expansion, partnerships, or asset investments more attractive than international growth initiatives in the near term.
What to watch
- Quarterly domestic and overseas occupancy, ADR and RevPAR growth versus prior year and prior quarter.
- Management commentary on corporate travel, MICE pipeline, wedding demand and premium leisure booking trends.
- Overseas market demand recovery, cancellation rates, competitive pricing and currency movements.
- Consolidated EBITDA margin progression, particularly whether domestic operating leverage offsets international fixed-cost pressure.
- Any revision to FY guidance, capex plans, debt levels, expansion pipeline or brokerage earnings estimates.
- Evidence of room-supply additions in core domestic markets that could pressure future pricing.
- Prioritize domestic corporate accounts, MICE bookings, weddings and high-yield leisure packages to protect occupancy and average daily rates.
- Use targeted rather than broad discounting at overseas properties, emphasizing direct bookings, loyalty conversion and profitable demand segments.
- Shift discretionary marketing and operating investment toward domestic markets with the strongest demand visibility while tightening cost controls overseas.
- Communicate property-level occupancy, ADR, RevPAR, margin and booking-lead-time trends to demonstrate that domestic performance is durable rather than seasonal.
- Evaluate whether domestic cash generation can fund selective asset upgrades or expansion without increasing leverage materially.