Indian Hotels Shares Plunge 3% to Near 2-Month Low After Morgan Stanley Downgrade

• Indian Hotels Company (IHCL) shares dropped over 3% on January 7, hitting a near two-month low of Rs 703.30.
• Morgan Stanley downgraded IHCL to 'equal-weight' from 'overweight' and cut its target price to Rs 780 from Rs 811.
• The brokerage cited a strong industry RevPAR cycle but limited upside surprises, cutting FY26-28 EPS outlook by 2-3%.
• IHCL reported a 49% YoY decrease in Q2 FY26 consolidated net profit to Rs 285 crore, though revenue rose 12% to Rs 2,041 crore.
• The stock has fallen 17% in the past year, with a market capitalization of Rs 1,00,437.38 crore.

Why It Matters: IHCL shares fell sharply after Morgan Stanley's downgrade and target price cut, despite revenue growth.