The brokerage believes that the company’s near-term growth remains restricted with no new assets getting commissioned till the financial year 2028, as per estimates.
ITC Hotels comprises of 140 properties and around 13,500 keys. Around 60% of its inventory is under the luxury segment. It has developed a strong portfolio of owned assets of 5,500 keys over the last two decades. However, it has an asset-light pipeline to further expand its footprint to over 200 hotels and 20,000 keys by 2030, according to JM Financial.The company Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) has grown at a Compounded Annual Growth Rate (CAGR) of 22% over financial year 2023-2025. However, JM Financial expects that number to taper down to 13% over financial year 2025-2028, along with a 11% revenue CAGR.
This would be aided by around 7% growth in Average Daily Rate (ADRs) and ramp-up of the Sri Lankan asset, JM Financial said.While robust cash generation can enable ITC Hotels to accelerate growth by way of inorganic acquisitions, the brokerage sees such an outcome to be adequately priced in at current valuations of 30x financial year 2027 earning.
JM Financial has valued the company at 25x its June 2027 EBITDA, which is at a 15% discount to Indian Hotels’ target multiple.
A total of six other analysts with coverage on ITC Hotels have “buy” recommendations on the stock with JM Financial becoming the first with a “sell” rating.
Shares of the demerged ITC Hotels listed on the stock exchanges on January 29 at ₹180 on the NSE and ₹188 on the BSE.
The stock was down 1.18% at ₹241.9 apiece around 9.50 am on Monday. The stock has gained 49.5% in the last six months.
Also Read: Mazagon Dock shares in focus after this positive development for P-75(I) submarines
First Published: Aug 25, 2025 7:48 AM IS
