Buy Ventive Hospitality; target of Rs 700: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • International business recovery: Ventive Hospitality's international business is expected to recover in 2HFY27, driven by mid-teen growth in revenue and EBITDA, as diesel prices in the Maldives decline and the company benefits from its solar power installation at Raaya.
  • MICE and events business: The company's MICE and events business is expected to drive room nights and banquet revenues, with marquee corporate, government, and medical events contributing to growth.
  • India hospitality business: The India hospitality business is expected to be driven by steady MICE activity, global capability center-led office expansions, and limited new luxury hotel supply in Pune.
  • Sustainable profitability: The company's transition toward renewable energy is expected to reduce fuel cost volatility and promote sustainable profitability of its international portfolio.

Thesis Validation Checklist

  • International business growth: Mid-teen revenue and EBITDA growth in the international business in 2HFY27.
  • MICE and events business performance: Continued growth in MICE and events business, with increasing contribution to room nights and banquet revenues.
  • India hospitality business performance: Steady growth in India hospitality business, driven by MICE activity, office expansions, and limited new supply.
  • Sustainable profitability: Reduction in fuel cost volatility and improvement in profitability due to the company's transition toward renewable energy.