Nomura Recommends 'Buy' for Indian Hotels, ITC Hotels: Up to 22% Returns Expected

• Nomura initiated 'buy' coverage on Indian Hotels Company Ltd. (IHCL) and ITC Hotels Ltd., projecting significant returns.
• Indian Hotels has a price target of ₹830, indicating a 22.4% upside, driven by high growth visibility in average daily rates and improving earnings quality.
• Nomura expects Indian Hotels' revenue and EBITDA to grow at a 15-16% CAGR from FY25-28.
• ITC Hotels received a 'buy' rating with a ₹230 price target, suggesting a 19.7% upside, fueled by strong RevPAR growth and margin expansion.
• ITC Hotels' revenue and EBITDA are projected to grow at 15% and 18% CAGR respectively over FY25-28.

Why It Matters: Nomura recommends buying Indian Hotels and ITC Hotels, forecasting up to 22% returns due to strong growth prospects.