Indian Hotels: (IHC)

• TAJ Group of TATA’s
• Incorporated in 1902
• Largest company in hospitality segment
• 118 properties with 14,300 rooms under its control.
• High Market Share
• Debt of ` 3818 Cr Vs `4671 in March 2009
• Debt Equity Ration : 1.04
• In 2007, attempted to acquire controlling stake in London based Oriental Express Hotel Group. Holds 6,9% equity stak in OEH for US$262 Million (Rs.1078 Cr). IHC wrote off Rs.305 Cr towards diminution in value of investment in OEH.
• Economic slowdown hitting hard: 63% occupancy rate Vs 65% in FY 2012
• Average room rate inched up only marginally : to ` 9504 from ` 9469
• Since Parent Company (TATA) is financially strong – investors can consider investing in this stock which is heavily undervalued.
• IHC issued 4.8 Cr convertible warrants to TAA Sons for ` 497.5 Crores in FY 2013. These warrants converted to equity @ ` 103.64 per share.
• IHC’s networth is ` 2934 cr