Tata Group Stock to Buy with 33% Upside Potential; Recommended by JM Financial

Synopsis: Shares of Indian Hotels Company Limited (IHCL) may remain in focus after brokerage firm JM Financial maintained a ‘Buy’ rating on the stock with an upside potential of around 33% from current levels

The Indian hospitality sector has emerged as one of the stronger consumption themes in recent years, supported by a recovery in travel, weddings, corporate events, and premium leisure spending. Within this space, Indian Hotels Company Limited continues to remain one of the most closely tracked names due to its strong brand portfolio and leadership position.

The shares of one of India’s leading hospitality companies and a Tata Group stock are in focus after brokerage firm JM Financial maintained a Buy rating on Indian Hotels Company Limited with an upside potential of around 33%, citing strong demand trends, room inventory expansion, and growth in its fee-based business.

With a market capitalisation of ₹93,897 crores, the shares of Indian Hotels Company Limited are trading at ₹660 a piece in today’s market session, gaining a decent momentum from its 52-week low of ₹565 a piece

The Upside Rating Rationale

Brokerage firm JM Financial remains positive on Indian Hotels Company Limited and has maintained its ‘Buy’ rating on the stock. The firm has set a target price of ₹850 per share, which suggests an upside potential of around 33% from current levels

Expansion in Room Inventory and Fee Business: One of the key reasons behind the positive outlook is IHCL’s ongoing expansion strategy. JM Financial expects growth to be aided by nearly 8% growth in room inventory, which could support higher revenues in the coming quarters.

Growth in Fee-based Management: The brokerage also highlighted the company’s growing fee-based management business, where IHCL earns fees from managing hotel properties rather than owning them outright. This asset-light model is often preferred by markets as it can support higher return ratios and scalable growth.

Strong Industry Tailwinds: The broader hotel sector continues to benefit from healthy domestic travel demand. Occupancies remain elevated while average room rates (ARRs) have improved across many cities. 

Business travel recovery, premium tourism demand, weddings, and large events are also supporting the sector’s outlook. As one of the strongest brands in Indian hospitality, IHCL remains well placed to benefit from these trends.

What It Means for Investors

The positive brokerage outlook focuses on the improving fundamentals of India’s hospitality sector, where strong travel demand, rising room rates, and expansion-led growth continue to support leading players. For IHCL, its diversified brand portfolio and asset-light management strategy position it as a key proxy on the premium travel and tourism theme.

Going forward, the company’s ability to scale inventory, grow management fees, and sustain profitability could remain important indicators of how the broader hospitality cycle evolves in the coming quarters.

Company Overview and Financial Insights 

Indian Hotels Company Limited is one of India’s leading hospitality companies and a part of the Tata Group. The company operates some of the most recognised hotel brands in the country, including Taj, Vivanta, SeleQtions, and Ginger, giving it a strong presence across luxury, upscale, and mid-market segments. With operations spanning multiple countries and cities, IHCL has built a diversified portfolio, making it one of India’s most prominent and globally recognised hotel players.

The company’s revenue rose by 12% from ₹2,533 crores in December 2024 to ₹2,842 crores in December 2025. Meanwhile, the reported EBITDA rose from ₹962 crores to ₹1,076 crores in the same period.

The company demonstrates decent financial performance with a ROCE of 17.2% and a ROE of 16.1%, indicating efficient capital utilisation and decent returns for shareholders.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Tata Group Stock to Buy with 33% Upside Potential; Recommended by JM Financial appeared first on Trade Brains.