Rakesh Jhunjhunwala Portfolio: Tata Group’s stock Indian Hotels will turn ex-dividend on Wednesday. The Board of Directors of the Rakesh Jhunjhunwala-backed company has declared a dividend of Rs 0.40 per equity share for eligible shareholders and the record date for payment of dividend has been fixed as June 22, 2022. While announcing the dividend payment, the Rakesh Jhunjhunwala-backed company, citing the Indian stock exchanges, informed, “(The Board of Directors of the company) has recommended a dividend of Rs.0.40/- per equity share of 1/- per equity share of each company. 40 per cent (previous year Rs.0.40/- per equity share of Rs.1/- each fully paid @ 40 per cent}, subject to approval of the members in the Annual General Meeting.
Indian Hotels Company Limited, 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 the largest hotel chain in India by market capitalization and the largest hospitality company in South Asia. 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 pressure. However, the stock is looking bullish after hitting a low of Rs 207.90 in the morning deals in Monday’s session. In the past one year, this hospitality stock has risen from around Rs 130 to Rs 222 per share level, up over 70 per cent over this time horizon. It has declined by about 7.78 per cent in the last one month. It has given returns of 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 term as compared to the long term, especially last year.
According to Indian Hotels Company Limited shareholding pattern from 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 or 1.11 per cent stake in the company while his wife Rekha Jhunjhunwala holds 1,42,87,765 shares or 1.01 per cent stake in the company.
Sharekhan said in a note last week: Management of Indian Hotels Company Ltd has put in place a robust growth plan by FY 2025-26 with strong improvement in cash flow and strengthening of balance sheet with focus on becoming net cash positive Is. Growth in domestic leisure travel demand will help the company achieve strong growth at pre-pandemic levels in the absence of a fourth wave. “The EBITDA margin will continue to improve in the coming years. Thus, we maintain Indian Hotels Company Limited as one of our top picks in the hospitality sector. We maintain our buy recommendation on the stock with an unchanged price target of Rs. 286. The stock is currently trading at 33x/23x its FY2023E/24E EV/EBITDA,” the brokerage has said.
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