Hotel Leela - Blackstone reports

Hotel Leelaventure Ltd has informed that this has reference to the reports in a section of the press quoting industry sources to the effect that Blackstone is investing US$ 1 billion as Private Equity investment in Hotel Leela Ventures.

While the Company has a policy of not commenting on unconfirmed reports, the Company would state that the Company is working on various corporate initiatives to take the Company forward in establishing a Pan India / global presence.

CLSA - Hotel Leela

CLSA has a UNDERPERFORM on Hotel Leela

Trading at 25% discount to Indian Hotels

Tariff cuts could affect performance

Anand Rathi - Hotel Leela

Anand Rathi expects the company to report EPS close to Rs 3.90 for FY 08, and expect the market to discount it by at least 15 times.

This gives a target of Rs around Rs60 in medium term. BUY with short term target of Rs 52 and medium term target of Rs 62.

ICICI Securities - Hotel Leela

ICICI Securities feels that Hotel Leela is expensively valued and would continue to underperform the sector and advise clients to switch to better performing stocks in the sector. Given the delayed expansion plans and absence in major markets till 2010, they feel Leela’s current valuations have factored in the business growth till FY09.

At the current price of Rs 44, the stock trades at P/E of 16.2x FY08E EPS of Rs 2.7 and 16.8x FY09E EPS of Rs 2.6.

We rate the stock as HOLD with a price target of Rs 42, 16x FY09E.

Morgan Stanley - Overweight and Underweight

Overweight

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Union Bank of India

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Mahindra and Mahindra

Underweight

IDBI

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Kotak Mahindra Bank

Hotel Leela

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ACC

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