Profit and loss statements are often depressed for such businesses in initial days due to the high interest cost. One thing to note is that Samhi is a young business, from FY11 to now they’ve become the third (apologies if this is not correct) largest hotel business by #keys, and in the meanwhile they accumulated a lot of debt. Post IPO debt reduction combined with the strong sectoral tailwinds values SAMHI at the said multiple.
Disc: Invested.
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