Friday, April 2, 2010

JINDAL HOTELS - In an Expansion Mode

This company has no relation with any of the famous Jindal Groups. Jindal Hotels runs a 3 star hotel in the name of Hotel Surya Palace at Baroda. It started its operations in  1987 and currently having  60 Deluxe Rooms , 46 Club Rooms and 8 Suites. It positioned as a hotel for  business travelers .Surya Palace won “Business Hotel of the Year – Economy”  award at the H & FS Awards for Excellence. Due to sluggish business enviournment in last few years company’s performance was not extraordinary. Even if it is a  single hotel company now,what is attracting is its very low equity base, prime location and rapid expansion plans .Company has a small equity base of about  5 crore (after convertion of warrants).It has recently concluded an expansion at a cost of 9 crore and going to spend another 38 crore( funding through loans and internal accruals) to develop another property near to its existing one. It also have some plans to start budget hotels in various locations. Last year company posted an EPS of Rs.4.2 .By all its new initiatives and growth in business  from the existing property, company is expected to post better results ahead. CMP is Rs.47/-


  1. Dear Value Pick,

    If you are tracking FIRST LEASING COMPANY OF INDIA i wanted to know your views :).

    Thanks .


    ARMAN FINANCIAL bse code 531179 seems better choice than Capital Trust.Atleast Arman Financial they have never gone into loss since past many years.I feel recent foray into MFI will bring the company into greater dimension and forthcomming higher NP, thereby, entering into different league like SE Investment.One can steal the opportunity at lower prices and have patience.Management is good and proven.It will go miles after miles.



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