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The company and its subordinates are communally known as Taj Hotels Resorts and Palaces, is one of
Asia's prime and most excellent hotel company in hospitality sector.
IHCL covers 52 Destinations, 12 Countries, 5 Continents, 77 Hotels, 7 Authentic Palaces, 12 Resorts & SPAs,
3 Personal Jets and Luxury Yachts out of this the company have 17 international hotels in the Maldives,
Mauritius, Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East
and Australia
Key monitorables in the coming quarters
Timely commencement of new properties under IHCL.
Recovery in occupancies and increase in ARRs in the key cities.
Performance of key international properties.
The first half of a fiscal is normally a lean period for the hotel industry in India. With increased foreign
tourist arrivals (in the upcoming season) and an improvement in domestic business traveling, we expect
the occupancies in the key cities to be in the range of 80-85% (the company is expecting the same to be
80-90%) in the second half of FY2011. This along with the increase in the ARRs and the improvement in the
food & beverages income and other operational income would lead to a much better performance in the
second half of FY2011.
The improving business fundamentals of the international properties and the company’s thrust on improving
its balance sheet (by reducing its debt on books) provides visibility of its future earnings.
Valuation: At the CMP of Rs 100, the stock trades at 19x its FY2012E (consolidated) EPS of Rs5.1 and Rs0.96
crore enterprise value/room of FY2012E.
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