Where are ITC Hotels shares are headed after beating estimates in Q1

Shares of ITC Hotels Ltd. can rise another 13% from current levels brokerage firm Jefferies said in a note on Thursday, July 17.Jefferies retained its “buy” rating on the stock, and has revised its price target higher to ₹270 per share from ₹240 apiece. The stock ended the previous session at ₹238.49 apiece, near the earlier price target.

Jefferies said the company’s first quarter earnings

beat estimates with its revenue, earnings before interest taxes depreciation and amortisation (EBITDA), and profit after tax (PAT) increasing 16%, 19% and 54%, respectively.
This was led by a robust 13% growth in revenue per available room (RevPAR), scale-up in Sri Lanka project, whose revenue increased 40% from the previous year, and higher other income.
The June quarter also saw post-demerger additional overhead costs, Jefferies said.The brokerage added that ITC Hotels remains focused on scaling to over 20,000 keys by 2030, from the present 13,500 keys, led by Asset Light expansions.

Jefferies has raised ITC Hotels’ EBITDA estimates by 4% for financial year 2026-2028 and its revised price target of ₹270 factors in the company’s EBITDA and PAT to grow at a Compounded Annual Growth Rate (CAGR) of 15% and 23% respectively, over financial year 2025-2028.

All five analysts that have coverage on the stock have a “buy” rating on it.

ITC Hotels shares were trading 0.13% lower at ₹238.37 apiece at 10.40 am on Thursday, July 17. The stock has gained 38.9% this year, so far.

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