Elara Capital bullish on this hotel stock, sees a 26% upside after Q4 results; here's why

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₹545. The brokerage firm estimates that the stock might rise by 26% going forward. Given that Juniper Hotels is building big box hotels in strategic demand-generating areas, the brokerage said in its research that it is optimistic about the company's growth narrative.

Additionally, it is modernising already-existing hotels by adding ballrooms, F&B shops, and refurbishments.Also Read: Juniper Hotels share price rises 10% after a flat debut: Should you Buy, Sell or Hold the stock?Additionally, the domestic brokerage thinks that growth is being driven by the luxury portfolio of Juniper Hotel. The research report indicates that Juniper Hotels had a 26% gain in topline revenue to ₹250 crore, driven primarily by an 8% increase in average room rate (ARR) to ₹11,110 and a 200 basis point rise in occupancy to 80%. The luxury portfolio of Juniper Hotels had a 19% increase in revenue per available room (RevPAR).

The upper upmarket portfolio's 7% RevPAR improvement was fuelled by a 300 basis point rise in occupancy.“We expect 10% CAGR in room addition through FY24-28E, driven by organic expansion and inorganic growth opportunities. ARR may grow in high single-digit CAGR over the same period, driven by rate increase as well as better geographical mix. Being jointly promoted by the Saraf group and Hyatt Hotels Corporation, Juniper Hotel has strong promoter pedigree," said Elara Capital in its report.Also Read: Juniper Hotels IPO: Price band set at ₹342-360 per share; check GMP, key dates, issue details, moreJuniper Hotels share price today ended 5% lower at ₹424.55 apiece on the BSE.