BofA Securities initiates Schloss Bangalore stock with Buy rating

Published 08/07/2025, 09:24
BofA Securities initiates Schloss Bangalore stock with Buy rating

Investing.com - BofA Securities initiated coverage on Schloss Bangalore Ltd (THELEELA:IN) with a Buy rating and a price target of INR520.00 on Tuesday.

The luxury hospitality company, also known as The Leela, operates 13 hotels with 3,600 keys across India, including five owned flagship properties containing 1,200 keys, according to BofA Securities.

The firm notes that Brookfield, a global asset manager, acquired the company’s assets in 2019, resulting in strong execution with average room rate and revenue per available room compound annual growth rates of 10% and 11% respectively over FY19-25 for its owned portfolio, outperforming the 8%/9% growth seen in India’s luxury hotels segment.

BofA Securities projects Schloss Bangalore will deliver 12% revenue CAGR and 14% EBITDA CAGR from FY25-28E, with earnings growth exceeding 90% from a low base during the same period.

The company’s balance sheet has strengthened following recent business performance and capital infusions from promoters and IPO proceeds, with net debt expected to decrease from approximately Rs39 billion in FY24 to Rs3 billion by FY28E, according to the research firm.

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