Hotel industry ‘s fortunes are closely related with the growth in Tourism and Business Travel. After many years of lackluster performance, due to recession in western countries which reduces the chance of higher spending for vacations in one side and limited chances for business travel on the other side,now this industry started to show some early signs of revival. Royal orchid Hotels (ROH) is a Bangalore based hotel chain running around 15 hotel properties across the country. Royal Orchid having presence in major Indian Cities includes Bangalore,Mysore,Mumbai,Ahmedabad,Jaipur,Pune,Goa,Hyderabad and Hospet.
Company is now adding new properties in cities like Mumbai and entering into new locations like Shimoga , Mussoorie ..etc either directly or through joint ventures.It is planning to raise the inventory of rooms to 2000 by this FY and 4000 by 2015.Almost 70% income of ROH is generated from business travelers and balance from tourists.It is a point to note that ,major properties of the company is located around IT hubs like Bangalore ,Hyderabad and Pune. Any revival in IT Sector will positively impact the business fortunes of the company. For the financial year ended March 2010 ,on a consolidated basis ROH posted a turnover of Rs.120 Cr and a net profit of Rs.7 Cr which was one of the worst performance in recent past .For the half year ended Sep 2010 ,ROH doubled its net profit compared with last year. Company’s well known brand, good repute ,pan India presence ,revival both in tourism and mainly in IT sector related business travel ..etc are expected to make it an industry out performer going forward. At CMP of Rs.73/- .it is a value BUY.
I'm strongly agree with your recommendation to buy Royal Hotel Orchid. The stock is good for fresh buying to the target of 83 in short term period.
ReplyDeleteIntraday Stock Tips
TCPL Packaging Ltd has informed BSE that the members at the Extra Ordinary General Meeting (EGM) of the Company held on December 06, 2010, inter alia, have passed the resolution to create, offer, issue and allot from time to time in one or more trenches, upto 5,50,000 Warrants on preferential basis be issued to the Promoters /Promoters Group Companies entitling the holder of each Warrant to apply for and obtain allotment of one Equity Share of Rs. 10 each, against such Warrant, at a premium of Rs. 40/- per Equity Share in such manner and on such price, terms and conditions as may be determined by the Board in accordance which the provisions of Chapter VII of the SEBI Regulations 2009 and other provisions of the Law as may be prevailing at that time, subject to necessary provisions and approvals
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what will be the impact on the stock price?????
Hi Mr Valuepick. I have been investing in some of your stocks with successful results. Please give your opinion about Edserv, Mindtree and GSS America. Thanks in advance.
ReplyDeletei think kamat hotels is better bet in this secto besides vithal kamat has been continiously buying from openmarket
ReplyDeleteDear KMD
ReplyDeleteSince the number is very small,no big equity expansion is happening
AZZZ
ReplyDeleteEdserv and GSS named in price rigging probe,this may affect in near future.Mindtree is ok,may consider Persistent systems along with this.
Kamat hotel is highly leveraged ,profitability may affect due to rising interest rates.
ReplyDeleteSir,
ReplyDeletecan you give some insights into the prospects of jain irrigation with a one year outlook
Don't put a time frame for jain irrigation,keep it in the portfolio
ReplyDeletehi vp
ReplyDeleteany idea why su raj diamonds quotes at such low pes ?
is there any issue with the promoters (i havent heard anything )or is it a sector thing?
regards
rajesh
dear sir,
ReplyDeletepl tell your opinion on camson bio and claris life sciences
thanks
Dear sir,
ReplyDeleteCan you please share your views on Diamond Power infrastructure?
Thanks
Is Royal Orchid Hotel a good buy at 81-82?
ReplyDeleteThanks