ICICIdirect has maintained 'Hold' on Indian Hotels after the announcement of company's first quarter results. The stock broker fixed price target to Rs 100.

Commenting on the results,  ICICIdirect said, ''IHCL's Q1FY15 results came in above our estimates. Better-than-expected revenues led to higher profitability in the quarter. Revenues increased 10.2% YoY to Rs 10.32 billion above our estimates of Rs 9.66 billion, mainly led by higher occupancy. On the margin front, EBITDA margin increased 182 bps YoY to 10.3% above our estimate of 9% led by operating leverage benefit. Despite a better performance at the operating level, the company reported a marginal net profit of Rs 15 million led by higher tax and depreciation expenses. The company reported an exceptional item of Rs 565.3 million led by gain on sale of long term investment.''

Commenting on the investment rationale, the stock broker said, ''At the CMP of Rs 92, the stock is trading at 20.0x and 16.7x its FY16E and FY17E EV/EBITDA, respectively. With no major room expansion, we expect the balance sheet strength to improve, going forward. However, near term demand weakness in domestic and international segment will weigh coupled with further risk of impairment. Hence, we revise our target price downwards to Rs 100 a share (i.e. at 18.0x FY17E EV/EBITDA and 3.5x FY17E book value). We maintain Hold rating on the stock.''

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