innHotels.tel - MARKET EYE-BNP cuts Hotel Leela target, but maintains 'buy'
BNP Paribas has cut the price target of Hotel Leela Ventures to 46 rupees from 53 rupees citing delay in opening of its Delhi and Chennai properties and higher gearing. "Net debt to equity increased to 1.8x in 2HFY11 from 1.6x in FY10. The increase was driven primarily by the capex incurred for its under-construction hotels in Chennai and New Delhi," the French bank said in a note. It has however retained its 'buy' rating as the opening of Delhi and Chennai properties is expected to increase the company's overall room inventory by 37 percent by 2Q FY12. At 12.38 p.m. shares in the company were trading at 38.35 rupees, down 2.17 percent.