Multibagger tourism space stock poised for more upside in short term? Note down Sandeep Jain's target

Multibagger PSU Stock: India Tourism Development Corporation (ITDC) shares have more than doubled investors' wealth in just one year, and counting. New Delhi-headquartered ITDC is a hospitality, retail and education PSU under the Ministry of Tourism. Tradeswift Broking Director Sandeep Jain has a positional 'buy' call on ITDC shares with a 1-3-month target of Rs 850 and a stop loss at Rs 740.

Jain's target implies an upside of 10.5 per cent in the multibagger PSU stock. 

The stock appears to be gathering momentum for higher levels and offers a positional opportunity at a good valuation, according to Jain. 

"ITDC has a high level of government stake and provides a host of tourism-related services," Jain told Zee Business.

Here are five things to know about ITDC shares: 

Earnings: ITDC registered a consolidated net profit of Rs 11.64 crore for the quarter ended June 30, marking a fall of 31.5 per cent compared with the corresponding period a year ago.

Its revenue fell 28.1 per cent to Rs 84.91 crore, according to a regulatory filing.

The company saw a year-on-year decline across business segments. Revenue from the company's hotels unit fell 11.8 per cent to Rs 66.17 crore while that from its international trade business fell 3.5 per cent to Rs 3.11 crore.

Travels and tours revenue contracted 39 per cent to Rs 10.08 crore and engineering consultancy projects revenue declined 72.5 per cent to Rs 2.10 crore.

Revenue from ITDC's 'event management, hospitality, tourism management institute, and others' unit fell 65.3 per cent to Rs 7.01 crore.

Historical Performance: ITDC shares have already rewarded investors with a return of 67 per cent in 2024 so far, and 110 per cent in one year. 

Peers: Some of ITDC's peers are: 

• Indian Hotels Company
• EIH
• Chalet Hotels
• Lemon Tree Hotels
• Juniper Hotels

Valuation: On a trailing 12-month basis, ITDC commands a higher price-to-earnings (PE) multiple than most of its listed peers. 

Shareholding Pattern: At the end of the April-June period, Government of India held a more than 87 per cent stake in ITDC while the remainder was with public shareholders including LICI ASM Non-Par, according to shareholding data available with the exchanges.