Monarch sees near‑50% upside for Krishna GVK hotel stock

Monarch Network Capital Research has started coverage of Krishna GVK Hotels & Resorts with a BUY call and a target price of ₹475, roughly 49% above the last traded level of ₹319. The broker sees the stock re‑rating driven by strong occupancy in existing hotels, room‑rate growth potential, the recent consolidation of Taj Santacruz in Mumbai and the upcoming 256‑key Taj Yelahanka luxury hotel in Bengaluru. Monarch values the company at 8× FY29E EV/EBITDA, citing low leverage and robust earnings growth. It notes the stock trades at about 9.4× FY27E and 6.6× FY28E EV/EBITDA, well below peer multiples of 14‑15×, and argues a discount of more than 10‑15% would be excessive. Recent market moves show the shares up over 1.5% to an intraday high of ₹320, yet still 27% below the 52‑week peak of ₹438.85 and near the 52‑week low of ₹281.85 recorded in March 2026. Over the past month the stock fell more than 4%, about 7% in three months, and nearly 26% over the last year, though it has risen 126% in five years. Hyderabad remains the core of the business, with three luxury hotels – Taj Krishna, Taj Deccan and Vivanta – offering 597 rooms and representing about 42% of the city’s luxury inventory. Occupancy rates sit at 78‑83%, limiting volume growth. Monarch expects average room rates to rise 12.7% CAGR FY26‑FY29E and counts refurbishment and premiumisation to lift RevPAR. Key risks include slower roll‑out of new properties, construction delays, weaker rate or occupancy growth and the company’s heavy reliance on Hyderabad. ## Context The hotel sector in India is seeing rapid growth in premium travel demand, especially from business and MICE segments, which supports higher room rates for well‑located luxury assets.