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Feb 13
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LONG
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Puneet Atwal
Managing Director & CEO, Indian Hotels Company Ltd (IHCL)
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The speaker explicitly states that demand (9-12%) is outpacing supply (6-8%) and expects this trend to continue for 3-5 years. He notes the company has a "strong debt-free balance sheet" and is expanding its portfolio by 20% (600-800 rooms) annually. In a fixed-asset industry like hospitality, when demand exceeds supply, pricing power expands significantly (RevPAR growth). The shift to a "capital-light" model (leases vs. ownership) improves Return on Capital Employed (ROCE), while the "Ginger" brand provides a high-margin (40%) volume engine that captures the rising middle class. LONG. The company is the market leader in a supply-constrained, high-growth geography. New labor codes in India are increasing short-term costs by 10-12%. |
Bloomberg Markets
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