Target: ₹545

CMP: ₹479.60

Juniper Hotels, jointly promoted by the Saraf Group and Hyatt Hotels Corporation (HHC), and backed by its niche positioning in the luxury hotel development segment is the largest owner (1,836 rooms) of Hyatt-affiliated hotels in India. It is also the only hotel company in India to have a strategic equity investment by Hyatt (50 per cent pre-issue).

Benefitting from its signature experience – cumulative 115 years (including promoters’), Juniper is indeed exquisitely placed in terms of lineage. The Saraf Group’s robust asset development and management capabilities (>14 hotels built since 1977) with Hyatt’s peerless pedigree – 29 brands, 1,297 hotels and 311,171 rooms (as on 30 June 2023) – is a swanky foundation to lean on.

Juniper, being a Hyatt affiliate company, is expected to trade at a premium to its peers. With several organic and inorganic growth opportunities and strong promoter pedigree, we expect topline/EBITDA/PAT CAGRs of 17/20/33 per cent through FY24-27.

Initiate with Buy for FY26E TP of ₹545 based on 22x FY26E EV/EBITDA.

Key risks to our call are reduced buoyancy in occupancy and contraction in economic growth.