Chalet Hotels Share Price Target Q4FY24 Results: Buy, Sell or Hold?- IDBI Capital

IDBI Capital Brokerage recently released stock research reports on Chalet Hotels, focusing on share price targets, along with Result Update Q4FY24, featuring buy, hold, and sell recommendations and potential upside. Let’s delve deeper into their recommendations for Chalet Hotels Share Price Target.

Chalet Hotels Share Price

Chalet Hotels Ltd. performed exceptionally well in the last quarter of FY24, meeting our expectations. The company showed strong growth in its operations, leading to its best quarterly performance so far. The management expects that the positive trends in the domestic market will continue, further boosting their revenue per available room (RevPAR).

Key Performance Metrics

  • RevPAR: Increased by 7% year-over-year (YoY) to Rs 8,984.
  • Average Daily Rate (ADR): Grew by 5% YoY to Rs 11,862.
  • Occupancy Rate: Improved by 2% to 76% compared to the same quarter last year.
  • Net Sales: Rose by 23.8% YoY to Rs 4.1 billion.
  • EBITDA: Increased by 20% YoY to Rs 1.8 billion.
  • Net Profit: Jumped by 125% YoY to Rs 0.8 billion.

Expansion and Acquisitions Chalet Hotels recently acquired Courtyard by Marriott, Aravali, NCR. This property includes a 158-room resort on 14 acres of land. This acquisition will help Chalet expand its geographical reach and boost its future earnings.

Residential Projects Nine residential towers are nearly completed, with possession expected by the end of this quarter. The company expects to collect Rs 3,196 million in receivables from these sales once the handovers are completed.

Debt Reduction and Fundraising Chalet Hotels successfully raised Rs 10 billion through a Qualified Institutional Placement (QIP) in April 2024, mainly used to repay debt. This reduced their net debt to Rs 14.56 billion as of April 2024, down from Rs 25.09 billion in March 2024.

Future Plans and Investments

  • Capex: The company spent Rs 6.6 billion on capital expenditure in FY24. They plan to invest around Rs 15 billion over the next two years, with Rs 7 billion allocated for a new commercial tower in Powai.
  • New Hotels: Chalet launched its second hotel in Hyderabad with 168 rooms and has a robust pipeline to add about 865 more rooms by FY27, reaching a total of 3,917 keys.
  • Upcoming Projects: Construction of the second tower in Powai (Cignus 2) is on track for completion by FY27. Work on a new hotel in Airoli is set to begin in October, pending approvals.

Investment Recommendation We recommend holding Chalet Hotels with a revised target price of Rs 871. The company shows strong potential for growth in the hospitality sector, supported by robust performance and strategic expansion.

Chalet Hotels Share Price Target

Date15th May 2024
CMP (Rs)Rs. 787
Target PriceRs. 871
Potential Upside/Downside11%

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IDBI Capital
IDBI Capital

IDBI Capital is known as a research analyst providing detailed analysis and insights into stocks or companies traded in the stock market. They offer recommendations such as share price targets, buy/sell/hold suggestions, and insights into market trends.

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