Motilal Oswal has initiated coverage on Ventive Hospitality Ltd. with a Buy rating and a sum-of-the-parts based target price of ₹1,000, according to reports from NDTV Profit. The brokerage's analysis suggests the stock has upside potential of up to 30% from current levels. Ventive Hospitality operates marquee luxury assets in the hospitality segment (77%) and annuity segment (23%).
Ventive Hospitality's international operations account for 54% of total hospitality revenue despite representing only 25% of the company's total keys, as highlighted by Motilal Oswal's analysis. This disparity demonstrates superior operational efficiency and pricing power in overseas markets, driven by strong average daily rates and a diversified customer base facing limited new supply. The ongoing expansion includes a new 73-key Ritz-Carlton Reserve in Sri Lanka, with international strength providing a crucial buffer and growth engine contrasting with typical sector dependence on domestic markets.
Over the FY25–28 period, the company is projected to deliver a robust 21% revenue CAGR and 27% EBITDA CAGR, as reported by Motilal Oswal. This growth trajectory is supported by rapid multi-city expansion, rising infrastructure-led demand, constrained supply in Pune, and a growing membership-led hospitality portfolio anchored by Soho House. The company has strategically scaled its presence from 415 keys in 2024 to 2,140 keys by H1 FY26, with an additional pipeline of over 1,500 keys.
Adjusted PAT is forecast to more than double, aided by operating leverage, reduced interest costs, and a more favorable tax outlook, according to Motilal Oswal's analysis. The brokerage's sum-of-the-parts valuation methodology underpins the ₹1,000 target price, which implies significant upside potential from current market levels. The company's market capitalization stands around ₹25,000 crore with a P/E ratio of approximately 50x, trading at a premium compared to industry peers but within the range of sector leaders.
Ventive Hospitality is strategically scaling its presence in Pune, a market poised to benefit significantly from major infrastructure upgrades including the planned Navi Mumbai and Purandar International Airports, the Pune Ring Road, an expanded Mumbai-Pune Expressway, and the recently launched Messe Global Arena. Beyond Pune, the company is targeting high-potential cities like Bengaluru, Varanasi, Navi Mumbai, and Mundra. Excluding Bengaluru, key expansion targets project growth from 104 keys in 2026 to 1,178 by FY30, representing an 83% CAGR.
