Indian Hotels shares zoom 100% in a year, what's fuelling the rally?
Shares of Indian Hotels have doubled during the last one year on the back of good earnings show and aggressive expansion plans. The stock, which closed at Rs 142.54 on September 1 last year hit a record high of Rs 298.70 in today's session, translating into gains of 209 per cent during the period. Late investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala held 3 crore shares or 2.12 per cent stake in Indian Hotels in the last quarter. While Jhunjhunwala owned 1.11 per cent or 1.57 crore shares, his wife Rekha held 1.01 percent or 1.42 crore shares in the June quarter. In today's session, Indian Hotels shares gained 1.32 per cent per cent to hit a record high of Rs 298.70 against the previous close of Rs 298.40. Indian Hotels stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has risen 64 percent in 2022. Total 3.52 lakh shares of the firm changed hands amounting to a turnover of Rs 10.44 crore on BSE. Market cap of the firm rose to Rs 42,192 crore on BSE. The stock hit a 52-week low of Rs 138.08 on September 7, 2021. The latest spike in the shares of Indian Hotels comes after credit ratings firm ICRA upgraded the long-term credit rating of the non-convertible Debentures (NCDs). The ratings for NCDs worth Rs 300 crore have been revised to AA plus against the earlier AA rating. ICRA also assigned a fresh rating of AA plus (Stable) for a bank overdraft facility/WCDL of Rs 15 crore. Citing the reasons behind the upgrade, ICRA said the upgrade in the rating factors is based on the improvement in the capitalisation metrics and cash flow position of The Indian Hotels Company Limited (IHCL/the company), following fund raising in FY2022, and significant improvement in operating metrics in Q1 FY2023. IHCL raised equity of Rs 3,982.0 crore in FY2022 via rights issue and qualified institutional placement (QIP), the proceeds of which were primarily utilised for debt reduction. Source: BusinessToday