New Delhi, Oct. 6 -- Shares of Taj GVK Hotels & Resorts, renamed Krishna GVK, could see a sharp re-rating as the company enters a new expansion phase, according to Monarch Network Capital (MNCL) Research. The brokerage initiated coverage on the stock with a BUY rating and a target price of Rs.475, implying an upside of around 49% from last traded price of Rs.319.

The brokerage's investment case rests on a combination of strong occupancy at the company's existing hotels, scope for higher room rates, the consolidation of Taj Santacruz in Mumbai and the upcoming Taj Yelahanka property in Bengaluru.

Monarch Research said the company was moving from a period of limited owned-asset additions into a fresh growth cycle, with its existing portfo...