Chalet Hotels Q2 Results Review - Operationally Strong Quarter: IDBI Capital

IDBI Capital Report

Chalet Hotels Ltd.’s Q2FY25 result was in-line with our estimates on net sales and Ebitda front, while profit after tax was below forecast on account of change in the rate at which capital gains were taxed and indexation benefits have been withdrawn.

However, on operational parameters, the company reported yet another best ever quarterly performance aided by healthy revenue per available room growth. We anticipate RevPAR growth to further strengthen in H2, aided by wedding season and increased leisure and corporate travel.

New inventory addition at existing hotels, inorganic acquisition and upcoming hotels in Delhi and Goa will keep the hospitality revenue growth on uptrend. Further, rental assets and Koramangla residential project are expected to support the growth.

We have reduced our PAT estimate for FY25E, adjusting one time impact of tax outgo. Maintain Hold with a revised target price of Rs 924 (earlier Rs 934), assigning 27 times enterprise value/Ebitda on FY26E.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.