For the quarter ended March 2019, India Hotels (IHCL) reported a 55% growth in net profits to Rs.123 crore. The full year PAT of IHCL is up nearly 3 fold on a comparative basis. Also, the company has completed most of its capital expenditures and the next few years will be when the outcome of the ROI on these investments will start to fructify. Also with 7.5% growth in GDP, the tourism and business flows are expected to be quite strong in India. All these are likely to be helpful to IHCL.

The stock is currently quoting at Rs.154 and is close to its 1 year high. The fact that the company has completed its capital investment program augurs well for profit traction in future. One can look to buy the stock at the current price levels purely as a long term play on the India consumer story. Downside risks may be limited at current price levels.