Taj GVK Hotels & Resorts
Reco price: Rs 127
Current market price: Rs 126.95
Target price: NA
Brokerage: Angel Broking
Taj GVK is the market-leader in the Hyderabad market, where it has a share of 29 per cent in premium-segment rooms. In order to strengthen its foothold further and to tap mid-market room demand, the company is coming up with a 189-room property in Begumpet.
In 2007-08, about 78 per cent of Taj GVK’s room inventory was located at Hyderabad. To diversify its presence, the company came up with Taj Mount Road in Chennai, in December 2008. It is planning to enter Bangalore and exploring the possibility of entering the mid-market segment through tie-ups with Indian Hotels.
As the economic revival gathers steam, tourist arrivals are expected to increase from Q2 2009-10. Moreover, Taj GVK is on an asset-light expansion strategy to strengthen its grasp on the Hyderabad market.
Moreover, Indian Hotels (one of Taj GVK’s promoters), the industry leader, currently has an EV per room of Rs 1.2 crore, which makes the risk-reward unattractive for an investment in Taj GVK. The brokerage remains positive on the industry, but considering Taj GVK’s valuations, it maintains a neutral rating.
Taj GVK Hotels & Resorts
Reco price: Rs 127
Current market price: Rs 126.95
Target price: NA
Brokerage: Angel Broking
Taj GVK is the market-leader in the Hyderabad market, where it has a share of 29 per cent in premium-segment rooms. In order to strengthen its foothold further and to tap mid-market room demand, the company is coming up with a 189-room property in Begumpet.
In 2007-08, about 78 per cent of Taj GVK’s room inventory was located at Hyderabad. To diversify its presence, the company came up with Taj Mount Road in Chennai, in December 2008. It is planning to enter Bangalore and exploring the possibility of entering the mid-market segment through tie-ups with Indian Hotels.
As the economic revival gathers steam, tourist arrivals are expected to increase from Q2 2009-10. Moreover, Taj GVK is on an asset-light expansion strategy to strengthen its grasp on the Hyderabad market.
Moreover, Indian Hotels (one of Taj GVK’s promoters), the industry leader, currently has an EV per room of Rs 1.2 crore, which makes the risk-reward unattractive for an investment in Taj GVK. The brokerage remains positive on the industry, but considering Taj GVK’s valuations, it maintains a neutral rating.
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