Indian Hotels Company hits near two-month low after MS downgrade

Indian Hotels

07/01/2026 05:39

** Indian Hotels Company IHTL.NS, which operates the Taj chain of luxury hotels, falls 2.5% to 708.45 rupees, lowest since November 11

** Morgan Stanley downgrades stock to "equal-weight" from "overweight"; trims PT to 780 rupees from 811 rupees

** MS notes that the revenue per available room (RevPAR) cycle is growing but is not surprising on the upside

** Sees domestic hotel RevPAR growth of 9-10% in Q3 FY26; EBITDA up ~10% YOY; FY26-28 EPS outlook cut by 2-3% due to slightly lower RevPAR estimates and margins

** IHTL has strengthened the Taj luxury brand and leveraged its power to build a hospitality ecosystem, but current valuation (FY27 EV/EBITDA ~27.5x) captures risk-reward - MS

** Stock rated "buy" on average by 24 analysts; median PT at 870 rupees - data compiled by LSEG

** Stock fell 15.8% in 2025

 (Reporting by Brijesh Patel in Bengaluru)

 ((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))