Hi…
Was going through their Q1 FY 23 results and their concall. The results were very encouraging. The company reported very strong profitability in Q1 @ 11 cr at PAT level. Plus they are guiding for a topline of 280 – 300 cr for FY 23.
They also guided for consolidated EBITA of 35-40 pc for FY 23 !!! All this should translate into a PAT of > 50 cr for FY 23. At a mkt cap of 550 odd cr, the company looks like trading at cheap valuations despite the recent run up in the stock price.
For a company operating 80 hotels across India, the valuations really look really attractive to me. Plus they are likely to take their Hotels count to north of 100. Most of the new additions are likely to be managed hotels with no to little capex requirements. The travel trends in July were also encouraging, as indicated by the management.
Disc : initiated a tracking position @ 200 on Friday. Will add if the management is able to walk the talk.
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