ITC Hotels stock initiated with Add rating by Axis Capital on luxury focus

Published 03/09/2025, 08:44
ITC Hotels stock initiated with Add rating by Axis Capital on luxury focus

Investing.com - Axis Capital Limited initiated coverage on ITC Hotels (BSE:ITCHOTEL) with an "Add" rating and a price target of INR271.00, according to a research note released Wednesday.

The firm cited ITC Hotels’ position as India’s second-largest listed hotel chain, with strong anchoring in the luxury segment and recent diversification into multiple brands.

Axis Capital noted that after a decade of weak performance, ITC Hotels has returned to a growth trajectory, primarily through the managed route similar to industry peers, with a focus on the mid-premium segment.

The luxury-focused owned portfolio is positioned to benefit from the current industry upcycle, with the firm projecting a 15% EBITDA CAGR over FY25-28E, though this growth rate is expected to be lower than competitors like IHCL.

Axis Capital set its price target of INR271 based on a 30x Sep’27E EV/EBITDA multiple, compared to 35x for IHCL, while expressing some concern about the recent re-rating of ITC Hotels stock that has narrowed its discount to IHCL.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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