Shares of Indian Hotels Company (IHCL) jumped 7 percent to Rs 616 apiece on July 22 after the company reported healthy April-June quarter (Q1FY25) results.

So far this year, the stock of this hospitality chain rallied over 40 percent, as compared benchmark Nifty 50's 12 percent rise. Earlier, IHCL had hit 52-week high of Rs 663 per share on June 26, 2024.

In Q1FY25, the company's revenue increased by 5.7 percent on-year to Rs 1,550 crore, while net profit jumped 10 percent YoY to Rs 260 crore. Operationally, EBITDA climbed by 9.6 percent YoY to Rs 450 crore in Q1FY25 and margins expanded by 10 basis points YoY to 29 percent.

New business verticals that comprise of Ginger, Qmin, and ama Stays and Trails reported revenue of Rs 162 crore in Q1FY25, up 37 percent over the previous year. Reimagined business of TajSATS and The Chambers reported revenue of Rs 274 crore, up 17 percent YoY.

During the quarter, IHCL opened 6 hotels with SeleQtions hotel in Mahabaleshwar, Vivanta in Jamshedpur, Ginger in Nagpur and Jamshedpur, and Tree Life Resorts in Gangtok and Srinagar.

Having said that, analysts at HDFC Securities shared a 'reduce' call for IHCL, citing expensive valuations and assigned target price at Rs 540 per share.

"Heatwaves, general elections/code of conduct, and fewer auspicious wedding dates in the quarter presented headwinds. We believe the supply-demand mismatch will continue to favor IHCL in key locations for the next two years, allowing it to capitalize on opportunities with its asset-light capacity growth strategy. The newly launched 'Taj branded residences,' the ramp-up of earlier opened hotels, and a robust pipeline of new hotels will be supported by demand tailwinds. This will ensure sustained occupancy above 75 percent, single-digit growth in average room revenue, and high single-digit growth in RevPAR for the next two years," the brokerage firm stated.