JPMorgan has adjusted its outlook on Indian Hotels Company Ltd, reducing the September 2026 price target while maintaining confidence in the hospitality major's long-term prospects. The global brokerage cut its price target to ₹805 from ₹890, citing near-term performance challenges but retained its Overweight rating on the stock.

Target Revision and Valuation Adjustments

The revised price target reflects weaker-than-expected performance in the first half of FY26 and broader valuation de-rating across the hospitality sector. Despite the reduction, the new target still implies potential upside of approximately 12.5% from current market levels.

JPMorgan has trimmed its FY26-FY28 earnings forecasts by 1-3% ahead of the company's third-quarter results. The brokerage also lowered the valuation multiple for Indian Hotels' standalone business to 30x EV/EBITDA, approximately 10% below the stock's 10-year average.

Market Leadership and Strategic Advantages

Despite the target cut, JPMorgan remains constructive on the stock, emphasizing Indian Hotels' dominant market position and strategic strengths. The company maintains its status as the largest listed player in India's hospitality sector with significant operational scale.

The brokerage highlighted that most new additions follow an asset-light approach, which supports return ratios and cash generation capabilities. This capital-efficient strategy positions the company favorably as investors increasingly value disciplined capital allocation.

Industry Dynamics and Growth Drivers

JPMorgan identified several structural tailwinds supporting Indian Hotels' medium-term growth trajectory. Low supply growth across the hotel industry, combined with steady demand patterns, continues to create a favorable operating environment.

Key growth drivers include:

• Expanding domestic tourism segment
• Rising MICE (Meetings, Incentives, Conferences, Exhibitions) demand
• Improving international operations performance
• Operating leverage benefits from scale advantages

Earnings Outlook and Performance Expectations

While JPMorgan expects some moderation in RevPAR (Revenue Per Available Room) growth following a strong performance run, the brokerage believes earnings upgrades should continue. The company's market leadership by revenue and volume share positions it well to outperform peers even as growth rates normalize.

The revised price target incorporates a sum-of-the-parts valuation methodology, with the domestic business valued at a discount to historical averages. JPMorgan noted this re-rating already accounts for softer near-term trends while maintaining upside potential as earnings visibility improves over time.

JPMorgan has maintained its positive outlook on Indian Hotels Company by reaffirming an 'Overweight' rating with a price target of ₹805.00. This rating reflects the global investment bank's continued confidence in the hospitality sector leader's performance and growth prospects.

Analyst Rating Details

The investment bank's decision to maintain its 'Overweight' rating indicates a recommendation for investors to hold a larger position in the stock relative to its benchmark weighting. This suggests JPMorgan expects the company to outperform the broader market.

Market Implications

The 'Overweight' rating typically signals that analysts view the stock as attractive for investment, expecting it to deliver returns above the market average. JPMorgan's price target of ₹805.00 provides investors with a specific valuation benchmark for the hospitality company.

This maintained rating demonstrates consistency in JPMorgan's assessment of Indian Hotels Company's market position and future prospects within the competitive hospitality industry. The rating serves as guidance for institutional and retail investors considering their portfolio allocation decisions.