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Investing.com - Ambit Capital initiated coverage on Schloss Bangalore Ltd (THELEELA:IN) with a Buy rating and a price target of INR540.00, citing the company’s strong position in the luxury hospitality sector.
The research firm highlighted that Schloss Bangalore , backed by Brookfield with over US$1 trillion in assets under management, demonstrates consistent revenue per available room (RevPAR) outperformance of 1.4x compared to competitors, catering to the top 1% of domestic and foreign populations.
Ambit Capital noted that three key owned assets in Bengaluru, New Delhi, and Chennai contributed 70% of FY25 income, with limited upcoming luxury supply growth of 5.5-6.5% CAGR and no long-term lease supply expected.
The company maintains a lean balance sheet with 0.3x net-debt/EBITDA ratio and industry-leading margins of 46% in FY25, which Ambit reports is more than 8 percentage points ahead of luxury peers, creating room for inorganic growth opportunities.
Ambit Capital projects 17% revenue CAGR and 19% EBITDA CAGR for Schloss Bangalore over FY25-29E, with five of six owned pipeline assets scheduled to become operational in FY28, supporting the INR540 price target that implies a 22x one-year forward EV/EBITDA multiple.
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