Indian Hotels Shares Dip 4% Post Q4 FY25 Results: Should You Buy or Sell This Rakesh 

Jhunjhunwala Portfolio Stock?

Pune, May 6, 2025 — Indian Hotels Company Ltd. (IHCL), a prominent player in the hospitality sector and a key holding in the late Rakesh Jhunjhunwala's portfolio, witnessed a 4% decline in its share price following the announcement of its Q4 FY25 results. Despite reporting robust year-on-year growth, the stock's dip has prompted investors to reassess their positions.

Q4 FY25 Financial Performance

In the quarter ending March 2025, IHCL reported a consolidated net profit of ₹522.3 crore, marking a 25% increase from ₹417.76 crore in the same period last year. Revenue from operations rose by 27% year-on-year to ₹2,425.14 crore. The company's EBITDA also saw a 30% uptick, reaching ₹918.74 crore, with margins improving to 36.94%. (Business News Today, mint, Upstox - Online Stock and Share Trading)

On a standalone basis, net profit grew by 30.4% year-on-year to ₹481.2 crore, while revenue increased by 10% to ₹1,476.33 crore. (mint)

Market Reaction

Despite the strong financial performance, IHCL's share price fell by over 4% in intraday trading on May 6, 2025, hitting a low of ₹765.50 on the BSE. Analysts attribute this decline to profit-booking and concerns over the stock's current valuations. (mint, Business News Today)

Dividend Announcement

The company's board has recommended a dividend of ₹2.25 per equity share, subject to shareholder approval. This reflects IHCL's commitment to returning value to its shareholders. (Business News Today, Taj Hotels)

Analyst Perspectives

Analysts maintain a positive outlook on IHCL, citing strong domestic travel demand and a robust pipeline of new hotel openings. Motilal Oswal Financial Services has set a target price of ₹940, while Jefferies India has a slightly lower target of ₹980, down from ₹1,000 previously. Both firms highlight the company's potential for sustained growth, driven by its diversified portfolio and expansion plans. (Groww, mint)

Investment Considerations

While IHCL's recent share price dip may concern some investors, the company's strong financials and growth prospects suggest potential for long-term gains. However, given the current valuations, investors should exercise caution and consider their investment horizon and risk tolerance before making decisions.