I have been also invested in KPIT as well since 200 level. KPIT had different kind of advantage due to opening of EV theme as new theme. So one can’t compare Newgen with KPIT.

Second things , my opinion is different on newgen management. I believe on their words. They have done almost everything they have said in concall. So, take it that way. I respect your opinion on Newgen which is different than me.

Just adding in this thread – I’m going to leverage using Personal Loan from HDFC. Taking it at ~10.85. Will go bulk in Kotak.
Thesis : All the long term thesis on low valuations, conglomerate structure performing well etc etc + Short term trigger expected in 1-2 quarters of RBI ban lifting. Expecting 15-20% CAGR over the next 2-3 years. Let’s see how it goes.
It might not be the most upside I can extract out of the market; many other opportunities might even do better. But this bluechip fits the risk reward perfectly for me in case of leveraged money.

Concall Notes Q2

Business Overview:

• SAMHI Hotels Limited reported strong performance for Q2 FY25, with asset income of ₹266 crores, a 20% YoY growth.
• Same-store assets achieved a RevPAR growth of 16.5% YoY, driven by significant demand in core markets.

New Developments:

• Signed a long-term variable lease for a building in HITEC City, Hyderabad, to be converted into a 170-room upper-upscale hotel.
• Acquired an existing 142-room hotel in Bangalore, Whitefield, with plans for renovation and rebranding to the upscale segment.
• Development of an additional tower in Whitefield, expected to add 200 to 220 rooms to the portfolio.

Portfolio Growth:

• Secured a total of 525 rooms across three new upscale hotels in Bangalore and Hyderabad, enhancing the growth potential in core markets.
• The existing hotel portfolio is strategically positioned to capitalize on robust demand, with strong net absorption in office space and significant air passenger growth in Bangalore and Hyderabad.

Operating Performance:

• Same-store assets reported a 13.3% YoY revenue growth, leading to an EBITDA growth of approximately 20.2%.
• EBITDA margin improved to nearly 40%, indicating strong operational efficiency.

Internal Growth Initiatives:

• Integration of the ACIC Portfolio is progressing well, contributing to a 590 basis point margin improvement in Q2 FY25.
• Renovation and rebranding of the 137-room Caspia Pro in Greater Noida to Holiday Inn Express completed, with expected revenue contributions in the coming weeks.
• Approved conversion of commercial block in Sheraton, Hyderabad, into 42 additional rooms, operational by Q3 to Q4 FY26.

Capital Expenditure (Capex):

• Anticipated capex for Bangalore hotel renovation is ₹70-80 crores over the next 12-18 months, with an additional ₹270 crores for the new tower.
• Hyderabad asset capex is estimated at ₹180-190 crores, expected to be spent over the next 18-24 months.

Financial Guidance:

• Consolidated EBITDA for Q2 FY25 stood at ₹97 crores, an 80% YoY growth, with a consolidated margin of 36%.
• Net debt as of September 30, 2024, was approximately ₹1,880 crores, with plans to maintain a net debt to EBITDA ratio of 4.5x by the end of FY25.

Market Insights:

• HITEC City market shows strong performance with an average rate of ₹12,400 and RevPAR growth of 26% YoY in FY24.
• Management expresses confidence in the Hyderabad market due to limited new supply and strong demand drivers.

Strategic Vision:

• Management is focused on capital-efficient growth through variable leases, aiming to increase the share of revenue from such leases from 13% to 20% in the near term.
• Plans to recycle capital through divesting non-strategic assets to maintain a healthy balance sheet while pursuing growth opportunities.