Sometimes, companies in the stock market embark on a journey that surprises investors. SAMHI Hotels is one such company. When the company entered the market nearly two years ago, it received considerable excitement. However, in the past four months, the stock has fallen nearly 30% from its 52-week high, raising many questions among investors.
Why has brokerage interest in SAMHI Hotels increased
SAMHI Hotels’ business model is robust, and its portfolio is filled with international brands. Names like Sheraton, Renaissance, Hyatt Regency, Fairfield by Marriott, and Holiday Inn Express give it a premium touch. Brokerage firm YES Securities says SAMHI could grow rapidly in the coming months as demand in the hotel sector will increase in H2, room occupancy will improve, and the company is continuously increasing its room count and brand value.
How will the company’s earnings increase? Learn the real reason
Experts say that SAMHI is renovating its properties and increasing their average room rate. This is the strongest pillar of any hotel company’s earnings. Additionally, the company is shifting its portfolio toward the premium hotel segment, enhancing both its brand image and pricing power. The company has also consistently reduced its net debt/EBITDA over the past few quarters, making its balance sheet appear stronger than ever. Considering all these factors, YES Securities has set a target price of ₹300 for SAMHI Hotels.
Why is the hotel sector strengthening
The hotel sector is rapidly emerging these days. The surge in domestic and international tourism, the return of corporate travel, festive season demand, and the rapidly increasing number of hotels in non-metro cities are pushing the entire sector to new heights. ShareKhan also stated in its research note that cities like Navi Mumbai, Dehradun, Lucknow, Udaipur, and Noida are now becoming major hubs for the hotel business. This shift presents companies like SAMHI Hotels with the opportunity to grow rapidly in the future.
Can this stock deliver significant returns in the coming months
The stock is currently trading around ₹189 with a market cap of approximately ₹4,200 crore. This is significantly below its 52-week high, but market experts say this makes it a strong entry point. The company’s growth plans, sector tailwinds, and strong management make it poised to deliver significant returns over the coming 12–18 months. Brokerage firms believe that as the hotel sector’s growth phase accelerates, SAMHI Hotels could make a significant leap forward.
Could SAMHI Hotels be your next high-return stock
All signs suggest that the company is slowly preparing for a major rebound. H2 growth, strong ADRs, a premium portfolio, and an improving balance sheet could make SAMHI Hotels one of the most interesting stocks to watch over the next few months. It is now considered an undervalued gem in the market, which could shine when the time is right.
FAQ
Q.1: Is SAMHI Hotels worth buying now?
Brokerages YES Securities and ShareKhan both have a Buy rating, but it’s important to understand your risk appetite before investing.
Q.2: Can it rise by 65%?
Yes, YES Securities has given a target of ₹300, which is approximately 65% upside from current prices.
Q.3: How is the hotel sector doing right now?
The sector is in a boom phase domestic travel, corporate travel, and hotel additions in non-metro cities growing rapidly.
Disclaimer: This article is for educational and informational purposes only. Investing in the stock market comes with risks. It is important to consult your financial advisor before making any investment.
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