Nomura Initiates Buy Rating on IHCL Citing Capital-Light Model and Growth Prospects

Nomura has initiated coverage on Indian Hotels Company Limited (IHCL) with a 'Buy' rating and a target price of Rs 830, projecting a 22.4% return over the next 12 months. The brokerage highlights IHCL's shift to a capital-light model focused on management contracts and revenue-sharing leases, which enhances earnings quality and scalability. Strong demand driven by constrained hotel supply, domestic tourism, and events supports resilient average daily rate growth, positioning IHCL to meet its FY30 strategic goals.