--- title: "SAMHI Hotels climbs 8% as Street eyes up to 55% upside on growth prospects" type: "News" locale: "en" url: "https://longbridge.com/en/news/281739093.md" description: "SAMHI Hotels' stock rose 8.2% to ₹147.95 following bullish ratings from brokerages like Choice Institutional Equities and Antique Stock Broking. Choice initiated coverage with a 'Buy' rating and a target price of ₹200, citing strong growth prospects. Antique set a target of ₹230, indicating a 55.45% upside. Both brokerages expect significant revenue growth driven by acquisitions and rebranding, despite potential risks from geopolitical conflicts and market volatility. SAMHI's financials show reduced leverage and increasing free cash flow, supporting its self-funded growth strategy." datetime: "2026-04-05T23:31:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281739093.md) - [en](https://longbridge.com/en/news/281739093.md) - [zh-HK](https://longbridge.com/zh-HK/news/281739093.md) --- # SAMHI Hotels climbs 8% as Street eyes up to 55% upside on growth prospects Bullish calls from brokerages, including Choice Institutional Equities, and Antique Stock Broking, lifted investor sentiment for SAMHI Hotels on Monday, April 6, 2026, with the stock witnessing strong buying interest in an otherwise volatile market. Following the favourable outlook, SAMHI Hotels’ share price surged 8.2 per cent to hit an intraday high of ₹147.95 on the NSE. The stock pared some gains but continued to see robust demand. At 12:26 PM, it was trading at ₹146.28 apiece, up 7 per cent from its previous close of ₹136.73. In comparison, the benchmark Nifty50 was largely flat at 22,709, down just 4 points or 0.02 per cent. ### Choice initiates coverage with ‘Buy’ Among brokerages, Choice Institutional Equities initiated coverage on SAMHI Hotels with a ‘Buy’ rating, citing its acquisition-and-rebranding model, upper-upscale expansion strategy, and strong growth in ARR and revenues. The brokerage highlighted high-margin operations, a self-funded growth model, and scalable asset-light opportunities via RARE India. Choice has assigned a target price of ₹200, valuing the company at 9x FY28E EV/Adjusted Ebitda, implying an upside potential of 49.1 per cent. Karan Kamdar and Vinay Rawal, analysts at Choice, expect SAMHI to deliver revenue, Ebitda, and PAT CAGRs of 14.3 per cent, 18.2 per cent, and 22.1 per cent, respectively, over FY26E–FY29E. Growth is expected to be driven by acquisitions, rebranding initiatives, and ongoing premiumisation. “SAMHI’s stake in RARE India positions it to build a scalable asset-light experiential platform with ₹90–100 crore revenue potential,” the analysts wrote in a research report. According to Choice, the company is expected to operate 5,677 keys across key micro-markets near corporate hubs and airports by FY29E. Its acquisition-and-rebranding model, which accounts for 87 per cent of the portfolio, continues to drive growth by turning around underperforming assets under global brands, while the remaining 13 per cent provides stability. ARR and revenue are projected to grow at CAGRs of 7.7 per cent and 14.3 per cent, respectively, over FY26E–FY29E. “With planned expansions, rebranding, and conversions to upper-upscale inventory, we expect ARR CAGR of 7.7 per cent and revenue CAGR of 14.3 per cent over FY26E–FY29E, reaffirming SAMHI’s position as a high-efficiency consolidator in India’s premium hospitality market,” Choice said. Margins are also expected to improve, supported by a lean cost structure, low OTA exposure (16 per cent), and controlled commissions (around 4.2 per cent). A higher share of room revenue (around 60 per cent), improved F&B performance, and asset upgrades are likely to drive operating leverage and expand margins by 388 basis points by FY29E. Backed by a ₹750 crore infusion from GIC and ₹210 crore in asset monetisation, SAMHI has reduced leverage, with net debt/Ebitda at 2.9x, and lowered interest costs to around 8.3 per cent. Rising free cash flow—from ₹57.7 crore in FY25 to ₹240 crore by FY29E—along with 33 per cent lower capex per key, supports its self-funded growth strategy. Finance costs are expected to decline, while PAT is projected to grow at a CAGR of 22.1 per cent over FY26E–FY29E. However, Choice cautioned that risks include extended geopolitical conflicts, leverage exposure, interest rate volatility, execution risks in asset turnarounds, operator dependence, and land title uncertainties. ### Antique retains bullish view Antique Stock Broking has retained its bullish stance on SAMHI Hotels, naming it a top pick within its hospitality coverage universe. The brokerage noted that the sector is currently facing tepid demand and heightened uncertainty due to the Middle East conflict, which has impacted inbound travel and overall domestic travel sentiment. Despite near-term headwinds, it maintained that the medium-term outlook remains structurally positive. Antique has set a target price of ₹230 per share. The assigned target price implies a 55.45 per cent upside potential from the current market price. The brokerage expects the company’s revenue to grow 8 per cent year-on-year to ₹350 crore, driven by a 14 per cent rise in average daily rates (ADR) to ₹8,500. Occupancy is projected to dip 100 basis points year-on-year to 74 per cent, resulting in a 6 per cent increase in RevPAR to ₹6,300. The company’s Ebitda margin, Antique said, is likely to contract by 160 basis points year-on-year to 36.5 per cent, primarily due to the GST impact. Adjusted for this, margins are expected to remain broadly flat compared to 38.1 per cent in Q4FY25, the brokerage said. \============================== _**(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. 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