Now Reading: Juniper Hotels shares rally, brokerages see up to 72% upside
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Juniper Hotels shares rally, brokerages see up to 72% upside
The Story in Brief
Juniper Hotels shares extended their rally for a second straight session on Tuesday, opening at Rs 199.24 on the NSE. The stock has risen from Rs 192.09 to Rs 199.73 over the last two sessions. Multiple brokerages have turned bullish on the hospitality stock after the company's analyst meet in Mumbai, with some predicting a potential upside of up to 72%.
Brokerage Axis Capital reiterated a 'buy' rating and raised its target price to Rs 330 from Rs 322, implying a 72% upside from Monday's closing price of Rs 192. Elara Capital set a target of Rs 365, while JM Financial gave a 'buy' rating with a target of Rs 350. The optimism is driven by Juniper's plan to nearly double its room count to over 3,900 keys by FY31, backed by a capex roadmap of over Rs 1,900 crore.
Management is targeting a doubling of EBITDA to roughly Rs 1,000 crore by FY31, implying a CAGR of about 20%, while maintaining operating margins above 40%. The company is in advanced-stage discussions to acquire three brownfield assets totalling around 600 keys. Nuvama noted near-term momentum is supported by the Westin Bengaluru Phase 1 rollout and strong performance at Grand Hyatt Mumbai and Andaz Delhi.
Indian Opinion Analysis
Juniper Hotels, a joint venture between India's Saraf Hotels and Hyatt, listed in February 2024 at Rs 455 but has since lost over half its value, making the current analyst optimism a bet on a turnaround. The key trigger is the October commissioning of Bengaluru's BEN Phase 1, which could restore investor confidence. The company's large-format hotel strategy, combining rooms, dining and serviced apartments on single parcels, is capital-intensive but promises compounding returns. Investors should watch the commissioning date and the company's ability to self-fund the Rs 1,900-crore capex from internal accruals without raising debt, as gross debt-to-EBITDA below 2.6x is a key covenant.
The next signal is the September quarter results, which will show if occupancy and average room rates at its flagship properties can sustain the momentum needed to hit the FY31 EBITDA target of Rs 1,000 crore.
Source: livemint.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
