Prabhudas Lilladher has issued a buy recommendation for Samhi Hotels with a target price of ₹264 in its research report dated March 10, 2026. According to the broker's analysis, the recommendation is based on increased EBITDA estimates and strategic diversification through the acquisition of RARE India, a luxury hospitality platform. The target price represents a valuation of 10.5x FY28E EBITDA, down from the earlier target of 12x multiple.
The broker expects investment in RARE India to open a new revenue stream and result in B2C commission income of ₹425 million for FY27E and ₹556 million for FY28E. As reported by Prabhudas Lilladher, RARE provides Samhi Hotels exposure to the leisure segment through an asset-light route, diversifying the business model and lending scale advantage. The acquisition is expected to boost occupancy rates to 35-45% and achieve average room rates (ARR) of ₹25,000 for existing properties.
Following the RARE acquisition incorporation, Prabhudas Lilladher expects revenue and EBITDA CAGR of 15% and 23% respectively over FY26E-FY28E. The broker has increased EBITDA estimates by approximately 4% over the next 2 years due to the strategic diversification benefits. The recommendation maintains a buy rating with the revised target price of ₹264, reflecting confidence in the company's expanded business model through the luxury hospitality platform.
