NEW DELHI: Indian Hotels Company Ltd. (IHCL), which manages the Taj Group of five-star hotels, is on the brink of crossing the historic market cap milestone of ₹1,00,000 crore on Friday. The company’s shares, which languished at ₹74 in 2020 during the COVID-19 crisis, have soared almost tenfold to ₹692 in 2024.
This dramatic turnaround has turned a ₹5 lakh investment in 2020 into a staggering ₹50 lakh today. As of now, IHCL’s market capitalization stands at ₹98,033 crore, with its current share price at ₹689.
The stock, which reached a 52-week high of ₹704, has a P/E ratio of 76.3, reflecting the company’s robust earnings growth. The return on capital employed (ROCE) is 15.1%, while return on equity (ROE) stands at 14.3%. Despite the rapid growth, the dividend yield remains at a modest 0.25%.
Commenting on this, Krishna Patwari, Founder and MD of Wealth Wisdom India Private Limited says, “So far in the calendar year 2024, IHCL has transcended the market, by soaring nearly 57%, compared to a 14.69 % rise (YTD) in the BSE Sensex. A sharp rally in the stock price of IHCL has seen the market cap of the Tata Group company inch towards Rs 1 trillion (Rs 1 lakh crore). With market demand persisting to outpace supply and promising structural tailwinds, the sector is placed well to clock strong revenue growth in the quarters ahead. IHCL will smoothly achieve double-digit revenue growth for the financial year 2024-25 (FY25). The sector is well-positioned to capitalise on an upcycle, driven by the demand-supply gap and market penetration opportunities in Tier II and Tier III markets.”
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IHCL is a leading hospitality player in India, with a diverse portfolio spanning luxury and midscale segments. By March 2024, the company operated 218 hotels with 24,136 rooms and has a pipeline of 92 hotels with an additional 12,953 rooms. Taj, its luxury brand, leads with 26 hotels and 4,611 rooms, followed by Vivanta, SeleQtions, and Ginger brands.
The company’s expansion continues at pace. IHCL opened 20 hotels in Q4FY24, including 3 SeleQtions and 1 Vivanta under management contracts, and 14 Tree of Life resorts through sales and distribution agreements. In FY24, IHCL signed 53 hotels and opened 34, reflecting its aggressive growth strategy.
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Shares of IHCL traded at ₹689 as of Friday afternoon, slipping 1.69% during the session. The stock touched a session high of ₹704 and a low of ₹371. The dividend yield percentage stood at 0.25%
As IHCL approaches this significant milestone, its financial metrics reflect continued strength. The company posted a quarterly profit of ₹260.19 crore, marking an 11.67% increase, while sales grew by 5.72% to ₹1,550.23 crore in the same period.
IHCL’s growth story from pandemic-hit lows to market leadership highlights its resilience and strategic expansion. The company’s ability to navigate crises and emerge stronger positions it as a dominant player in the Indian hospitality sector.