Technical analyst Kunal Bothra of LKP Shares has maintained 'buy' rating on Indian Hotels Company Limited stock to achieve an intraday target of Rs 106.

According to analyst, the stock can be purchased on dips.

The stock of the company, on January 10, closed at Rs 99.05 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 118.35 and a low of Rs 86 on BSE.

Current EPS & P/E ratio stood at 1.76 and 56.92 respectively.

As per reports, the market for hotel rooms in the country may amplify by about 60% by the next 3 years as hospitality chains revert to building up novel projects.

In the economic slump of 2008-09, lots of hotel projects failed and several developers opt for more dependable formats including residential developments.

The overall demand for hotel rooms has since lifted up with an augmentation in biz and holidaymaker.

The country's hotel room market is likely to expand to 1,190 crore as against 740 crore presently, by the next three years (2013) on account of new supply.

Knight Frank India Pvt. Ltd, a property advisory, made this declaration.

During the last month, Indian Hotels Company Ltd announced that its directors have sanctioned a preferential allotment of 36 million scrips at the rate of Rs 103.64 each to the founders Tata Sons.

Besides, the company will also allocate 48 million warrants at the equal price to Tata Sons after April 1, 2011.