India's Leela Palaces good pure-play luxury brand says Nirmal Bang; starts with 'buy'

Leela Palaces Hotels & Resorts

07/01/2026 08:05

** Brokerage Nirmal Bang initiates coverage on Leela Palaces Hotels & Resorts LEEA.NS with "buy" rating, sets PT at 529 rupees

** Says co structurally advantaged as a pure-play luxury brand, owning marquee city palaces and experience-led leisure assets

** Expects co to deliver like-to-like average room rate (ARR) of 9% CAGR (compound annual growth rate) over FY25-FY28E, aiding overall growth and profitability

** Adds co is improving like-to-like growth by shifting to a higher-quality mix, repurposing underutilized spaces into premium F&B/banquet/event venues and scaling ARQ (club) by Leela as a high margin, capex-light revenue layer

** Over FY25–FY28E, sees 16% revenue CAGR and 18% EBITDA CAGR

** LEEA rated "strong buy" on avg by 9 analysts covering it; median PT at 565 rupees- data compiled by LSEG

** Stock down 0.2% on the day; down ~4% since listing in June, 2025

(Reporting by Komal Salecha)

((Komal@thomsonreuters.com;))