Indian Hotels Gains 3% To Hit Record High On Healthy Business Outlook

Mumbai
Shares of the Indian Hotels Company (IHCL) gained 3 per cent to hit a record high of Rs 387.70 in Thursday's intra-day trade in an otherwise subdued market on expectation of strong business outlook. The stock surpassed its previous high of Rs 377.80, which it had touched on May 9, 2023.
The company has a diversified position in the hotel industry through brands such as Taj, Vivanta, SeleQtions and Ginger brands.In the past one year, IHCL has outperformed the market as shares zoomed past 75 per cent, as against a 15 per cent rise in the S&P BSE Sensex. According to IHCL, the outlook for the Indian hospitality industry during 2023 remains positive.
The upsides working in favour of the hospitality industry in India are good macroeconomic environment evidenced by 6 per cent plus GDP growth, superior performance by the services sector of the Indian economy, abating COVID-19 fears, continuing infrastructure development projects within the country, growth in air and railway passenger traffic and growth in demand for branded rooms outpacing a tepid growth in supply of those rooms to provide long-term sustainable demand, the management said.
Moreover, the management said that the industry learnt to work with volatility and adopt leaner cost structures, thus contributing to higher profitability. They expect growth in the industry to be largely driven by domestic demand, which is expected to remain strong through FY2023-24 as international travel saw green shoots of recovery and provided scope for further growth in demand.