Morgan Stanley Downgrades IHCL: Shares Plunge 3% to Two-Month Low

• IHCL shares dropped 3% to a two-month low of ₹710 after Morgan Stanley downgraded its rating.
• Morgan Stanley cut IHCL's rating from 'Overweight' to 'Equal-Weight' and reduced the target price to ₹780 from ₹811.
• The downgrade is due to limited upside surprise in RevPAR growth and a 2-3% cut in FY26-28 EPS estimates.
• IHCL reported a 49% YoY drop in Q2 Financial Year 2026 consolidated net profit to ₹285 crore, though operating income rose 12%.
• The stock has seen a 4% decline in 5 days, 2% in one month, and 17% over the last year.

Why It Matters: Morgan Stanley's downgrade led to a significant 3% fall in IHCL shares, hitting a two-month low.