28 April 2022
4QFY22 Results Update | Sector: Hotels
Indian Hotels
Buy
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2022 2023E
Sales
30.6
49.0
EBITDA
4.0
13.1
PAT
-2.6
4.8
EBITDA (%)
13.2
26.8
EPS (INR)
(1.8)
3.4
EPS Gr. (%)
(69.1) (285.4)
BV/Sh. (INR)
49.7
52.5
Ratios
Net D/E
(0.0)
(0.1)
RoE (%)
(4.8)
6.6
RoCE (%)
1.3
8.0
Payout (%)
(28.0)
17.7
Valuations
P/E (x)
(129.1)
69.7
EV/EBITDA (x)
84.0
25.6
Div Yield (%)
0.2
0.3
FCF Yield (%)
0.7
2.0
IH IN
CMP: INR236
TP: INR278 (+18%)
Business hotels to provide further growth
1,420
334.9 / 4.4
260 / 104
5/27/99
1431
EBITDA below our estimate, but PAT above our estimate on higher other
income
IHIN’s standalone RevPAR grew 27% YoY due to higher ARR. The same fell by
18% QoQ due to lower occupancy as well as ARR owing to the third COVID
wave. Higher demand in the Leisure segment as well as a recovery in
business travel has driven overall growth on a YoY basis.
Revenue was in line, while EBITDA in 4QFY22 came in below our estimate.
We maintain our FY23/FY24 EBITDA on account of the ongoing demand
recovery in Business Hotels. We maintain our Buy rating with a SoTP-based
TP of INR278 per share.
2024E
55.3
17.0
7.9
30.8
5.5
63.6
57.4
(0.2)
10.1
11.4
10.8
42.6
19.2
0.3
3.1
Higher ARR drives performance
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-22 Dec-21 Mar-21
38.2
41.1
40.8
28.6
25.3
29.2
16.0
17.1
15.2
18.5
12.3
17.8
Consolidated revenue grew 42% YoY, but fell 22% QoQ to INR8,721m (est.
INR8,918) in 4QFY22. EBITDA stood at INR1,590m (est. INR1,866m) v/s
INR713m/INR3,218m in 4QFY21/3QFY22. Adjusted PAT stood at INR619m
(v/s our estimated loss of INR104m and a loss of INR1,103m in 4QFY21).
Standalone revenue grew 28% YoY (-20% QoQ) to INR5,936m in 4QFY22, led
by RevPAR growth, owing to an improvement in occupancy at 130bp YoY
and an ARR growth of 24% YoY, with RevPAR at INR6,176 v/s INR4,877 in
4QFY21. EBITDA grew 56% YoY, but fell 37% QoQ, to INR1,634m.
Subsidiary (consolidated less standalone)
revenue stood at INR2,785m, up
84% YoY (-25% QoQ). Operating loss for its subsidiary came in at INR44m v/s
a loss of INR334m in 4QFY21 (EBITDA at INR608m in 3QFY22).
Revenue grew 94% YoY to INR30.6b, whereas EBITDA stood at INR4.1b in
FY22 v/s an operating loss of INR3.6b in FY21. IHIN generated a CFO of
INR6.7b in FY22. Its consolidated performance during FY22 was aided by a
reduction in total fixed costs/corporate overheads by 18%/28%.
Highlights from the management commentary
FII Includes depository receipts
RevPAR:
All-India RevPAR improved substantially and touched 76% of pre-
COVID levels in FY22, against the industry recovery rate of 65%. Recovery in
RevPAR was strongly supported by a revival in demand/occupancy in Leisure
(higher than pre-COVID levels) and Business segment. Estimated recovery in
Delhi/Mumbai/Bengaluru stood at 121%/118%/102% YoY in April’22.
Pipeline:
IHIN has 60 Hotels, with more than 7,500 rooms, under various
stages of development. The management is aggressively expanding its
Ginger portfolio. Of the projects in the pipeline, 40% will be under the
Ginger brand. Of the total projects in the pipeline, management contracts
constitute 74%.
Management contracts:
The company currently has 7,600 odd rooms under
management, with 1,100 rooms under the Ginger brand. Revenue from
management contracts stood at INR2.3b in FY22 and is expected to touch
INR3.5b in the future.
Sumant Kumar - Research Analyst
(Sumant.Kumar@MotilalOswal.com)
Research Analyst: Pranav Sanjeev Lala
(Pranav.Lala@motilaloswal.com) |
Meet Hasmukh Jain
(meet.jain@motilaloswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Indian Hotels
Valuation and view
IHIN's asset-light model as well as new/reimagined revenue-generating avenues,
with higher EBITDA margin, bodes well for RoCE expansion.
Like FY22, we anticipate a strong recovery in FY23 and FY24 on: a) improvement
in ARR once the economic activity normalizes; b) improved occupancies, led by
business travel as well as the Leisure segment; c) cost rationalization efforts; d)
an increase in F&B income as banqueting/conferences resume; and e) higher
income from management contracts.
Revenue was in line, while EBITDA came in below our estimate in 4QFY22. We
maintain our FY23/FY24 EBITDA on account of an ongoing demand recovery in
Business Hotels. We maintain our
Buy
rating with a SoTP-based TP of INR278
per share.
(INR m)
Var.
(%)
-2
-15
Consolidated quarterly earnings
Y/E March
Gross Sales
YoY Change (%)
Total Expenditure
EBITDA
Margin (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord. expense
PBT
Tax
Rate (%)
MI and P/L of Asso. Cos.
Reported PAT
Adjusted PAT
YoY Change (%)
Margin (%)
1Q
1,436
-85.9
4,096
-2,660
-185.2
1,001
879
317
-4,223
-861
-3,362
-693
20.6
130
-2,799
-3,445
NA
-239.9
FY21
2Q
3Q
2,567 5,599
-74.5 -59.2
4,070 5,766
-1,503
-167
-58.6
-3.0
1,028 1,023
968 1,121
669
547
-2,831 -1,764
-205
-280
-2,626 -1,484
-429
-307
16.3
20.7
103
12
-2,300 -1,189
-2,454 -1,399
NA
NA
-95.6 -25.0
4Q
6,150
-42.1
5,437
713
11.6
1,043
1,061
115
-1,277
-254
-1,023
-124
12.1
14
-913
-1,103
-349.4
-17.9
1Q
3,446
139.9
4,934
-1,488
-43.2
1,025
1,097
258
-3,354
-203
-3,150
-450
14.3
73
-2,773
-2,926
-15.1
-84.9
FY22
2Q
3Q
7,284 11,112
183.8
98.5
6,555 7,895
728 3,218
10.0
29.0
1,018
999
1,139 1,249
239
227
-1,189 1,197
108
102
-1,297 1,095
-113
232
8.7
21.2
22
103
-1,206
760
-1,125
837
-54.2
NA
-15.4
7.5
4Q
8,721
41.8
7,131
1,590
18.2
1,019
792
828
607
-164
771
-26
-3.4
55
742
619
NA
7.1
FY21
15,752
-64.7
19,369
-3,618
-23.0
4,096
4,028
1,647
-10,095
-1,600
-8,495
-1,553
18.3
259
-7,201
-8,401
-359.5
-53.3
FY22
30,562
94.0
26,515
4,048
13.2
4,061
4,277
1,552
-2,738
-156
-2,582
-358
13.9
253
-2,477
-2,594
-69.1
-8.5
FY22E
4QE
8,918
45.0
7,052
1,866
20.9
1,030
1,100
120
-144
0
-144
-48
33.0
7
-104
-104
NA
-1.2
-696
Key performance indicators
Y/E March
Revenue growth (%)
Standalone
Subsidiaries
EBITDA margin (%)
Standalone
Subsidiaries
Cost break-up
F&B cost (as a percentage of sales)
Staff cost (as a percentage of sales)
Other cost (as a percentage of
sales)
Gross margin (%)
EBITDA margin (%)
EBIT margin (%)
1Q
-83.3
-89.2
(170.0)
(215.3)
6.4
167.0
111.9
93.6
-185.2
-254.9
FY21
2Q
-72.4
-77.6
(53.1)
(68.4)
8.5
79.6
70.5
91.5
-58.6
-98.6
3Q
-52.2
-70.8
11.7
(42.9)
10.0
43.2
49.8
90.0
-3.0
-21.3
4Q
-35.4
-56.2
22.6
(22.1)
9.2
33.8
45.3
90.8
11.6
-5.4
1Q
117.8
183.5
(46.5)
(38.1)
8.1
72.2
62.9
91.9
-43.2
-73.0
FY22
2Q
179.3
191.8
13.1
4.6
8.6
38.3
43.1
91.4
10.0
-4.0
3Q
81.3
145.1
35.2
16.4
8.8
28.1
34.2
91.2
29.0
20.0
4Q
27.9
84.4
27.5
(1.6)
7.9
35.6
38.3
92.1
18.2
6.5
FY21
(58.7)
(74.3)
(8.6)
(59.9)
9.1
56.8
57.1
90.9
-23.0
-49.0
FY22
76.8
138.2
19.4
1.6
8.4
37.6
40.7
91.6
13.2
0.0
28 April 2022
2
 Motilal Oswal Financial Services
Indian Hotels
Key exhibits
Exhibit 1: Consolidated revenue trend
Revenue (INRm)
Growth YoY (%)
184
140
Exhibit 2: Consolidated EBITDA trend
EBITDA (INRm)
98
17
42
16
31
20
EBITDA Margin (%)
123
-185 -59 -104 -66 -44 -148
4
4
4
-15
-59 -42
-86 -75
-2022
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY20
FY21
FY22
Source: Company, MOFSL
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY20
FY21
FY22
Source: Company, MOFSL
Exhibit 3: Consolidated adjusted PAT trend
Adj PAT (INRm)
Exhibit 4: Standalone revenue trend
Revenue (INRm)
Growth YoY (%)
118
1
5
6
-15
-52 -35
-83 -72
179
81
28
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY20
FY21
FY22
Source: Company, MOFSL
FY20
FY21
FY22
Source: Company, MOFSL
Exhibit 5: Standalone EBITDA trend
EBITDA (INRm)
19
20
37
30
-53
12
EBITDA Margin (%)
23
-47
13
35
28
Exhibit 6: Standalone adjusted PAT trend
Adj PAT (INRm)
-170
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY20
FY21
FY22
Source: Company, MOFSL
FY20
FY21
FY22
Source: Company, MOFSL
28 April 2022
3
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 7: IHIN's industry-leading recovery in rates and occupancies
Source: Company, MOSL
Exhibit 8: Industry-leading recovery across key markets
Source: MOSL, Company
28 April 2022
4
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 9: IHIN's launch progression
Source: MOSL, Company
Exhibit 10: IHIN's industry-leading pipeline
Source: Company, MOSL
Exhibit 11: Leisure v/s non-leisure ORR (%) in domestic hotels Exhibit 12: Leisure v/s non-leisure ARR domestic hotels (INR)
Source: MOSL, Company
Source: MOSL, Company
28 April 2022
5
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 13: Occupancy in key international geographies (%)
Exhibit 14: ARR for key international geographies (USD)
Source: MOSL, Company
Source: MOSL, Company
Exhibit 15: Performance of key subsidiaries in FY22 (INR crore)
Source: MOSL, Company
Exhibit 16: Robust recovery in key cities v/s CY19/CY20
Source: MOSL, Company
28 April 2022
6
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 17: Revenue recovery in key international cities v/s CY19/CY20
Source: MOSL, Company
Exhibit 18: IHIN – standalone revenue metrics
Particulars
Occupancy (%)
ARR (INR)
RevPAR (INR)
Room revenue (INR m)
F&B revenue (INR m)
Other revenue (INR m)
Total revenue (INR m)
4QFY21
57.1
8,537
4,877
2,010
1,730
1,040
4,780
1QFY22
28.4
7,024
1,992
880
650
730
2,260
2QFY22
56.6
8,273
4,679
1,990
1,650
1,160
4,800
3QFY22
66.6
11,348
7,559
3,110
2,840
1,760
7,710
4QFY22
58.4
10,569
6,176
2,500
2,000
2,250
6,750
YoY (%)
130bp
24
27
24
16
116
41
QoQ (%)
-820bp
(7)
(18)
(20)
(30)
28
(12)
Source: Company, MOFSL
Exhibit 19: Revenue metrics for its domestic network
Particulars
Occupancy (%)
ARR (INR)
RevPAR (INR)
Room revenue (INR m)
F&B revenue (INR m)
Other revenue (INR m)
Total revenue (INR m)
4QFY21
55.9
5,953
3,329
4,910
3,940
850
9,700
1QFY22
28.6
4,656
1,331
2,070
1,880
1,050
5,000
2QFY22
53.9
5,878
3,168
4,940
4,190
1,630
10,760
3QFY22
62.7
8,089
5,070
7,930
7,090
2,430
17,450
4QFY22
54.5
7,671
4,183
6,520
5,640
3,000
15,160
YoY (%)
-140bp
29
26
33
43
253
56
QoQ (%)
-820bp
-5
-17
-18
-20
23
-13
Source: Company, MOFSL
Exhibit 20: Consolidated debt position
INR m
Gross debt
Liquidity
Net debt
4QFY20
26,020
7,450
18,570
1QFY21
26,020
6,870
19,150
2QFY21
34,620
5,200
29,420
3QFY21
35,880
5,090
30,790
4QFY21
36,330
5,230
31,100
1QFY22
40,420
4,300
36,120
2QFY22
40,810
5,090
35,710
3QFY22
27,300
8,250
19,050
4QFY22
19,850
20,900
-10,600
Source: Company, MOFSL
Exhibit 21: Standalone debt position
INR m
Gross debt
Liquidity
Net debt
4QFY20
19,430
5,550
13,880
1QFY21
19,430
5,400
14,030
2QFY21
24,990
3,890
21,100
3QFY21
25,950
4,200
21,750
4QFY21
25,920
4,130
21,790
1QFY22
28,860
2,710
26,150
2QFY22
28,860
3,110
25,750
3QFY22
16,650
5,800
10,850
4QFY22
9,430
19,020
-9,600
28 April 2022
7
 Motilal Oswal Financial Services
Indian Hotels
Highlights from the management interaction
Recovery:
There has been a resurgence in demand, with average rates in FY22
reaching 94% of pre-COVID levels (v/s CY19/CY20). The IMF has cut India’s GDP
growth outlook to 8.2% from 9.2% in CY22 (v/s the global outlook of 3.6%),
which will support demand in Hospitality and allied sectors. IHIN has seen a
recovery in ORR at 81% of pre-COVID levels v/s 74% at the industry level.
RevPAR:
All-India RevPAR improved substantially and touched 76% of pre-
COVID levels in FY22, against the industry recovery rate of 65%. Recovery in
RevPAR was strongly supported by a revival in demand/occupancy in Leisure
(higher than pre-COVID levels) and Business segment. Estimated recovery in
Delhi/Mumbai/Bengaluru stood at 121%/118%/102% YoY in April’22.
Qmin:
IHIN continues to expand the brand, which currently stretches beyond 20
cities. The management aims to expand to more than 25 cities in the future. It
plans to diversify further into cloud kitchens to reduce dependence on its Hotel
portfolio. The GMV for the Qmin brand was upwards of INR660m in FY22.
Ama Stays’
portfolio has 80 properties in 40 destinations. By FY25, IHIN plans to
reach 500 properties. Revenue from Ama Stays stood at INR600m in FY22.
Its
Ginger
portfolio consists of more than 85 Hotels. In 4QFY22, revenue from
Ginger touched 96% of pre-COVID levels, with margin expanding due to the shift
towards a ‘Lean Lux’ model. The management aspires to expand the portfolio to
100-150 hotels in coming years.
Cost management:
Corporate overheads stood at INR2.5b in FY22, implying a
sharp 28% drop (v/s INR3.5b in FY20). Overall fixed cost/month fell 18% to
INR15.9b due to various cost-saving initiatives taken by the management during
the COVID-19 pandemic, including manpower rationalization.
New openings/launches:
IHIN opened five new Hotels and signed five Hotels in
4QFY22, taking its total signed/new openings to 19/13 Hotels. The management
has guided at double-digit openings of the Ginger brand in FY23.
Pipeline:
IHIN has 60 Hotels, with more than 7,500 rooms, under various stages
of development. The management is aggressively expanding its Ginger portfolio.
Of the projects in the pipeline, 40% will be under the Ginger brand. Of the total
projects in the pipeline, management contracts constitute 74%.
Management contracts:
The company currently has 7,600 odd rooms under
management, with 1,100 rooms under the Ginger brand. Revenue from
management contracts stood at INR2.3b in FY22 and is expected to touch
INR3.5b in the future.
Performance of its subsidiaries:
The US subsidiary clocked in a revenue of
INR3.2b in FY22, but incurred an operating loss of INR460m. However, it is
expected to break even in the future. Roots Corporation clocked in an EBITDA of
INR430b in FY22. Occupancy rates in the UK surged to 76% in 4QFY22. ORR
surged to 95%/80% in Maldives/Dubai.
Demand for Leisure:
The demand trajectory in leisure travel is expected to
continue, with international travel ramping up. Leisure ORR has jumped 20pp to
64% in Mar’22 from Jan’22 levels, implying continuing growth.
Growth strategy:
Excess FCF would be utilized on key projects like Taj Delhi, Taj
London, and Ginger Mumbai and on renovations that are lined up.
28 April 2022
8
 Motilal Oswal Financial Services
Indian Hotels
Debt:
The company is net cash positive at INR1.1b, with a debt reduction plan in
place. Debt for the domestic business stands at INR4.5b and is due in Apr'23.
The same for the UK stands at INR2.5b.
Other highlights
Consolidated gross debt/net cash as of Mar’22 stood at INR19.9b/INR1.1b v/s
gross/net debt INR36.3b/INR31.1b as of Mar’21.
Management has declared a capex of 4% of revenue on a usual basis which
could reach a range of 5% to 6% especially coming off a pandemic.
The company has guided a cost savings of INR3b in the FY23 with wage inflation
and food inflation having limited effect.
28 April 2022
9
 Motilal Oswal Financial Services
Indian Hotels
Valuation and view
We believe IHIN's asset-light model as well as the new/reimagined revenue
generating avenues with higher EBITDA margins bodes well for RoCE expansion.
Like in FY22, we anticipate a strong recovery in FY23E/FY24E as well on: a) ARR
improvement, once the economic activities normalize, b) improved occupancies
driven by business travel as well as leisure segment, c) cost rationalization
efforts, d) an increase in F&B income as banqueting/conferences resume, and e)
higher income from management contracts.
Revenue was in-line while EBITDA for 4QFY22 came in below our estimates.
However; we maintain our FY23/FY24 EBITDA on account of ongoing demand
recovery in business hotels. We maintain our BUY rating with a SoTP-based TP of
INR278.
Exhibit 22: Valuation methodology
Particulars
IHCL- ex JV/ Associate
EV
Less: Net Debt
Less: Minority Interest
Sub Total
JV/Associate
Taj GVK (IHCL's share - 25.5%) - JV
Oriental Hotel (IHCL's share - 35.7%) - Associate
Sub Total
Target Price
CMP
Upside (%)
Methodology
EV/EBITDA (x)
Metrics
EBITDA
FY24
17,002
Multiple
(x)
22.4
Value
(INRm)
3,80,842
14,382
-5,930
3,89,294
2,220
3,359
5,578
3,94,872
Value/
share (INR)
268
10
(4)
274
1.6
2.4
3.9
278
236
18
Source: MOFSL
20% discount Attributable
to MCAP
Mcap
20% discount Attributable
to MCAP
Mcap
2,774
4,198
0.8
0.8
Exhibit 23: Change in estimates
Earnings Change
(INR m)
Revenue
EBITDA
Adj. PAT
FY23E
48,542
13,115
4,635
Old
FY24E
54,820
16,984
7,896
FY23E
48,986
13,128
4,809
New
FY24E
55,287
17,002
7,869
FY23E
1%
0%
4%
Change
FY24E
1%
0%
0%
Source: MOFSL
28 April 2022
10
 Motilal Oswal Financial Services
Indian Hotels
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY17
40,206
-0.1
34,110
84.8
6,096
15.2
2,994
3,102
3,238
549
413
-108
306
1,137
372.2
-200
-632
-551
NA
-1.4
FY18
41,036
2.1
34,332
83.7
6,704
16.3
3,012
3,692
2,690
617
1,618
225
1,843
1,211
65.7
-376
1,009
840
NA
2.0
FY19
45,120
10.0
36,823
81.6
8,297
18.4
3,279
5,019
1,901
834
3,951
66
4,017
1,571
39.1
-422
2,868
2,819
235.4
6.2
FY20
44,631
-1.1
34,956
78.3
9,675
21.7
4,042
5,633
3,411
1,324
3,546
410
3,955
448
11.3
-37
3,544
3,237
14.8
7.3
FY21
15,752
-64.7
19,369
123.0
-3,618
-23.0
4,096
-7,714
4,028
1,647
-10,095
1,600
-8,495
-1,553
18.3
259
-7,201
-8,401
-359.5
-53.3
FY22
30,562
94.0
26,515
86.8
4,048
13.2
4,061
-13
4,277
1,552
-2,738
156
-2,582
-358
13.9
253
-2,477
-2,594
-69.1
-8.5
FY23E
48,986
60.3
35,858
73.2
13,128
26.8
4,308
8,820
2,814
1,568
7,574
0
7,574
2,499
33.0
266
4,809
4,809
-285.4
9.8
FY24E
55,287
12.9
38,285
69.2
17,002
30.8
4,570
12,431
2,019
1,769
12,182
0
12,182
4,020
33.0
292
7,869
7,869
63.6
14.2
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Lease Liability
Deferred Tax Liabilities
Capital Employed
FY17
989
24,188
25,177
7,378
33,830
0
2,820
69,206
57,923
5,506
52,417
5,737
2,227
12,437
13,173
804
2,721
2,471
7,177
16,785
3,370
11,305
2,110
-3,612
69,206
FY18
1,189
40,622
41,811
7,774
24,270
0
3,563
77,418
63,356
7,385
55,971
5,655
1,970
15,965
14,184
857
3,286
2,703
7,338
16,328
3,513
10,349
2,465
-2,143
77,418
FY19
1,189
42,291
43,480
7,999
23,260
0
3,768
78,506
69,051
10,663
58,388
5,835
1,162
13,351
17,102
804
3,214
2,409
10,675
17,331
3,253
11,579
2,500
-229
78,507
FY20
1,189
42,379
43,568
7,649
26,020
18,987
1,869
98,093
73,316
14,706
58,610
6,146
15,833
2,441
14,266
17,887
936
2,900
3,156
10,895
17,090
3,893
10,441
2,756
798
98,093
FY21
1,189
35,295
36,484
6,346
36,328
18,464
781
98,403
81,772
18,802
62,970
6,110
15,297
1,650
14,832
14,269
929
2,198
1,536
9,605
16,724
3,178
10,921
2,625
-2,456
98,403
FY22
1,420
69,202
70,623
5,930
19,848
18,604
876
1,15,880
85,655
22,863
62,792
6,229
15,134
1,933
19,668
25,139
1,008
2,553
11,878
9,700
15,016
3,873
8,233
2,909
10,123
1,15,880
FY23E
1,420
73,159
74,579
5,930
9,148
18,604
876
1,09,137
89,201
27,170
62,031
6,229
15,134
2,387
19,668
20,942
1,179
3,355
5,631
10,777
17,254
4,028
9,797
3,429
3,687
1,09,137
FY24E
1,420
80,176
81,596
5,930
1,148
18,604
876
1,08,154
93,111
31,741
61,370
6,229
15,134
2,477
19,668
22,503
1,154
3,787
6,505
11,057
19,228
4,301
11,057
3,870
3,275
1,08,154
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Right-of-Use assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
28 April 2022
11
 Motilal Oswal Financial Services
Indian Hotels
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
EV/ Adj Rooms (INRm)
EBITDA/ Room (INR)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY17
-0.4
1.7
17.7
0.2
-53.9
-607.6
137.2
13.3
9.3
61.2
0.1
6.7
39.1
4,107
-2.2
3.8
-14.9
0.7
0.6
7
25
31
0.8
1.0
1.2
FY17
306
2,994
3,015
-868
-599
4,848
498
5,345
4,193
9,538
4,425
496
9,114
0
-11,719
-1,637
-458
0
-13,814
645
1,826
2,471
FY18
0.6
2.7
29.4
0.2
41.9
398.7
87.0
8.0
8.8
53.9
0.1
-0.1
36.6
4,313
2.5
4.6
2.3
0.6
0.5
8
29
31
0.9
1.4
0.4
FY18
1,618
3,012
2,073
-1,425
-1,033
4,246
675
4,920
-5,094
-174
-1,462
912
-5,644
14,999
-9,498
-4,089
-447
-7
957
233
2,471
2,704
FY19
2.0
4.3
30.6
0.4
25.3
118.8
54.9
7.7
8.0
43.6
0.2
1.4
35.8
5,157
6.6
5.9
5.2
0.7
0.6
7
26
26
1.0
2.6
0.4
FY19
4,017
3,279
1,068
-1,571
323
7,115
0
7,114
-5,067
2,048
2,614
-1,428
-3,882
0
-1,010
-1,901
-725
110
-3,527
-294
2,704
2,409
FY20
2.3
5.1
30.7
0.4
20.5
103.5
46.0
7.7
8.1
37.3
0.2
1.7
34.7
5,869
7.4
6.8
7.1
0.6
0.5
8
24
32
1.0
1.7
0.4
FY20
3,955
4,042
2,087
-448
-1,402
8,235
0
8,235
-5,855
2,380
-915
1,750
-5,019
0
2,760
-3,411
-725
-1,093
-2,470
746
2,409
3,156
FY21
-5.9
-3.0
25.7
0.4
-9.6
-39.9
-77.8
9.2
23.6
-102.7
0.2
-7.6
35.7
-6,404
-21.0
-5.7
-7.9
0.2
0.2
22
51
74
0.9
-1.9
0.8
FY21
-10,095
4,096
2,381
1,553
-2,722
-4,786
1,600
-3,187
-7,629
-10,816
-566
6,998
-1,197
0
10,308
-4,028
-693
-2,823
2,764
-1,620
3,156
1,536
FY22
-1.8
1.0
49.7
0.4
-28.0
-129.1
228.5
4.7
11.1
84.0
0.2
1.7
32.0
3,929
-4.8
1.3
0.0
0.4
0.3
12
30
46
1.7
0.0
0.0
FY22
-2,738
4,061
2,725
358
2,155
6,560
156
6,716
-4,286
2,431
-4,836
-7,303
-16,425
231
-16,481
-4,277
-693
41,270
20,050
10,342
1,536
11,878
FY23E
3.4
6.4
52.5
0.6
17.7
69.7
36.7
4.5
6.8
25.6
0.3
4.8
31.0
7,770
6.6
8.0
7.2
0.5
0.4
9
25
30
1.2
3.1
-0.1
FY23E
7,574
4,308
1,246
-2,499
188
10,817
0
10,817
-4,000
6,817
0
1,568
-2,432
0
-10,700
-2,814
-852
-266
-14,632
-6,248
11,878
5,631
FY24E
5.5
8.8
57.4
0.6
10.8
42.6
26.9
4.1
5.9
19.2
0.3
7.2
29.6
9,116
10.1
11.4
10.3
0.6
0.5
8
25
28
1.2
6.2
-0.2
FY24E
12,182
4,570
250
-4,020
1,287
14,269
0
14,269
-4,000
10,269
0
1,769
-2,231
0
-8,000
-2,019
-852
-292
-11,164
874
5,631
6,505
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
28 April 2022
12
 Motilal Oswal Financial Services
Indian Hotels
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in
the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary company of Passionate
Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited -
MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE),
Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository
Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and
Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
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derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and
other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are
completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL
may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage
service
transactions.
Details
of
pending
Enquiry
Proceedings
of
Motilal
Oswal
Financial
Services
Limited
are
available
on
the
website
at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can
have an independent view with regards to Subject Company for which Research Team have expressed their views.
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This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary
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For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
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Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the
United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and
under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL , including the products and
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and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any
investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption
from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission
("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an
inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or
act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
28 April 2022
13
 Motilal Oswal Financial Services
Indian Hotels
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.
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revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees
from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any
of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No:
022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822;
Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS
and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML,
which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered
through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a
group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is
no assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal,
Mumbai Bench.
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