Home / Business and Economy / Krishna GVK Set for 49% Surge on Expansion
Krishna GVK Set for 49% Surge on Expansion
6 Oct
Summary
- Monarch Network Capital initiates coverage with a BUY rating.
- Company renamed Krishna GVK, targets ₹475 price.
- Expansion includes Taj Santacruz and Taj Yelahanka properties.
Krishna GVK, previously known as Taj GVK Hotels & Resorts, is entering a new expansion phase, prompting Monarch Network Capital to initiate coverage with a BUY rating and a target price of ₹475. This suggests a potential 49% increase from its last traded price.
The brokerage's positive outlook is driven by strong occupancy rates at current hotels and anticipated increases in average room rates. The consolidation of Taj Santacruz in Mumbai and the planned opening of the Taj Yelahanka in Bengaluru by H2FY27 are identified as key growth catalysts.
While recent stock performance has been subdued, with a decline over the past year, longer-term returns have been substantial. Monarch expects revenue and EPS to grow significantly between FY26 and FY29E, supporting its valuation multiples.
Key risks for Krishna GVK include potential delays in new property development, slower-than-expected occupancy or rate growth, and continued reliance on the Hyderabad market.
