Indian Hotels Company (IHCL) Q3FY21 result reflected recovery in the domestic leisure segment post unlocking activities in key cities. Staycation, good wedding season and Christmas/New year vacations led to smart improvement in RevPAR over Q2FY21.However, domestic business and overseas operations was laggard and weighed on overall performance of the company. Net sales declined by 59.2% YoY to Rs 5,599 million, while EBITDA came in at negative Rs 167 million compared to Rs 4,257 million in Q3FY20. The company reported net loss of Rs 1,332 million.

The management guided healthy RevPAR growth to continue in domestic business as roll-out of Covid-19 vaccine paves the way for higher leisure travel sooner than later. "Though corporate segment is yet to show revival in terms of bookings, we believe with opening up of economy, business travel should gain momentum in H2FY22E," said IDBI Capital in its reports. 

"We have marginally increased our net sales and EBITDA estimates for FY22E/FY23E. However, after a recent sharp run up in the stock, value looks priced in at current level. Maintain Hold with a revised TP of Rs 115 (earlier 104), assigning 15x EV/EBITDA on FY23E, the broking firm added.

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