Shares of Ventive Hospitality Ltd came into focus on Wednesday after Motilal Oswal Financial Services initiated coverage on the stock with a ‘Buy’ rating, citing strong asset quality and growth visibility. The brokerage sees an upside potential of up to 30% from current levels, driven by improving demand trends and stable cash flows.

Ventive Hospitality operates a portfolio of marquee luxury assets, with 77% exposure to the hospitality segment and the remaining 23% coming from annuity-based assets. According to Motilal Oswal, this diversified revenue mix provides earnings stability while allowing the company to benefit from the ongoing recovery in the premium hospitality space.

In its initiation note, the brokerage highlighted Ventive’s focus on high-end properties, strong operating leverage, and improving occupancy levels as key positives. Motilal Oswal also pointed out that rising domestic travel, higher corporate demand, and improving average room rates are expected to support revenue growth over the medium term.

Also Read: Elon Musk Fails to Dismiss SEC Suit Alleging Delayed Twitter Stake Filing

The annuity segment, which contributes nearly a quarter of overall revenue, was seen as a cushion during demand slowdowns, ensuring predictable cash flows. This balance between cyclical hospitality earnings and steady annuity income strengthens Ventive’s overall business model, the brokerage said.

Following the initiation of coverage, Ventive Hospitality shares drew investor attention in early trade, even as the broader market remained cautious. Analysts believe that sustained performance across its luxury portfolio and disciplined capital allocation could help the stock deliver healthy returns going forward.

Also Read: 2 Nigerians Held in Gurugram for Cheating Employees by Impersonating Company Directors