Prabhudas Lilladher has issued a buy recommendation for Samhi Hotels with a target price of ₹290 in its research report dated January 29, 2026. However, market sentiment appears bifurcated as other analysts have revised their average one-year price target downward to ₹274.69 as of February 3, 2026. The stock closed around ₹169.10 - ₹172.82 in early February 2026, showing some recent volatility. The broker has revised its target multiple to 12x from 14x as it rolls forward its valuation to FY28E, signaling a recalibration of expected future earnings relative to broader market multiples.
The company reported Net Profit of ₹48.10 crore for Q3 FY26, representing a 111.3% YoY increase, while total income reached ₹341.90 crore, up 16.2% YoY. The company's adjusted EBITDA margin of 38.1% in Q3FY26 was in line with analyst expectations of 37.9%, which was adjusted for the loss of ITC post reduction in GST rate. The performance was bolstered by a 13.3% YoY rise in same-store RevPAR to ₹5,643. Prabhudas Lilladher expects top-line CAGR of 14% over the next 3 years, with EBITDA margins projected at 36.3%/38.6%/41.0% in FY26E/FY27E/FY28E respectively.
According to the broker's analysis, the addition of 42/22 keys at Hyderabad/Pune will aid growth in the interim period. The company's 'W' at HITEC City, Hyderabad is expected to begin operations with mock-up rooms ready by Q4FY26E by FY27E. A more substantial growth inflection is anticipated by fiscal year 2027, with the operational launch of a large hotel at HITEC City, Hyderabad. The company is projected for 19.1% earnings growth and 13.2% revenue growth per annum, contributing to an estimated top-line compound annual growth rate (CAGR) of 14% over the next three fiscal years.
As reported by Prabhudas Lilladher, Samhi Hotels trades at an attractive valuation of 9.5x/7.6x its FY27E/FY28E EBITDA estimates after adjusting for minority interest factor in the JV platform formed with GIC. The company's market capitalization was approximately ₹3,700-₹3,800 crore as of early February 2026. While the company's current P/E ratio of 19.1x to 24.5x is lower than competitors like Indian Hotels (46.6x) and EIH Ltd (26.03x), it trades at an EV/EBITDA of around 11.2x to 12.02x, which is lower than competitors who often command 15x to 20x multiples. The hospitality sector's overall revenue growth is projected at 9-12% YoY for FY2026, with the Indian hospitality market expected to grow at a CAGR of 14.76% to reach USD 55.67 billion by 2031.
