Disc: added tracking positions in HDFC Bank and Royal Orchid hotels.
Reasons –
HDFC Bank –
One of the few Banks bucking the trends of Corporate loans slowdown in Q1.
One of the few Banks that’s on a branch expansion spree when most others are going slow on the same.
However, lack of fresh updates on Technology updates in Q1 concall was a dampener.
Royal Orchid Hotels –
Great turn around in profitability in Q1.
Management has guided that they are likely to exceed Q1 profitability for rest of the Qtrs this year. That translates into an yearly profit of aprox 45 to 50 cr. The company’s mkt cap at the moment is just 550 cr. That translates into a FY 23 PE of 11-12 which looks cheap to me for a company running aprox 80 hotels in India.
Management is confident of taking the total Hotel count to 100 in the next 01 year. Most of these shall be managed properties where in investments from the company shall be minimal.
Regards,
Ranvir Dehal
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