Rakesh Jhunjhunwala Portfolio: Tata group stock, Indian Hotels, will turn ex-dividend on Wednesday. The Board of directors of the Rakesh Jhunjhunwala-backed company has announced a dividend of Rs 0.40 per equity share for eligible shareholders and the record date for payment of the dividend has been fixed on June 22, 2022. Announcing about the dividend payment, Rakesh Jhunjhunwala-backed company informed Indian bourses citing, “(The board of directors of the company has) recommended a dividend of Rs 0.40/- per Equity Share of Rs 1/- each fully paid up of the Company @ 40 per cent (previous year Rs 0.40/- per Equity Share of Rs 1/- each fully paid up @ 40 per cent}, subject to the approval of the Members at the Annual General Meeting.”
Indian Hotels Company Ltd., incorporated in the year 1902, is a Mid Cap company (having a market cap of Rs 31724.63 Crore) operating in Tourism & Hospitality sector. It is India’s largest hotel chain and South Asia’s largest hospitality company by market capitalization. The company operates under the brand “Taj Hotels, Palaces, and Resorts”.
After climbing to a lifetime high of Rs 268.95 on NSE in May 2022, this Rakesh Jhunjhunwala stock has been under profit-taking pressure. However, the stock has been showing an upside swing after hitting a recent low of Rs 207.90 in early morning deals in the Monday session. In the last one year, this hospitality stock has risen from around Rs 130 to Rs 222 per share levels, ascending to the tune of more than 70 per cent in this time horizon. In the last month, the has dropped nearly 7.78 per cent. It has returned 64.29 per cent in one year, 45.76 per cent in one year, and 67.72 per cent in five years. The stock has not performed well in the short run when compared to the long term, especially in the last year.
According to the Indian Hotels Company Limited, shareholding pattern for January to March 2022, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have invested in this hospitality company. Rakesh Jhunjhunwala holds 1,57,29,200 shares of the company or a 1.11 per cent stake whereas his wife Rekha Jhunjhunwala holds 1,42,87,765 shares or 1.01 per cent stake in the company.
Sharekhan, in a note last week, said: Indian Hotels Company Ltd’s management has charted a strong growth plan by FY2025-26 with strong improvement in cash flows and strengthening balance sheet with a focus on becoming net cash Positive. Pent-up demand for the domestic leisure travel will help the company to achieve strong growth over the pre-pandemic level in the absence of the fourth wave. “The EBITDA margins will consistently improve in the coming years. Thus, we maintain Indian Hotels Company Ltd as one of our top picks in the hospitality space. We maintain our Buy recommendation on the stock with an unchanged price target of Rs. 286. The stock is currently trading at of 33x/23x its FY2023E/24E EV/EBITDA,” the brokerage has said.
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