Another point according to me could be the fact that they are adding new hotels but all under managed hotel bucket except Mumbai which will be on Revenue share basis. Usually if one is bullish on hotel and tourism industries, operating leverage play is the most important trigger for your bottom line, for which managed hotel is not the best way I believe. It is kind of safe bet that is in downturn Royal Orchid doesnt stand to lose much due to low fixed cost and in upturn it does not get that multiplier effect in its bottom line either. A hotel player like Lemon Tree operating in a similar segment has lot of triggers left in its financials which are yet to perform whereas, a player like Royal Orchid who depends largely on increasing hotel under management and boost from large Mumbai Hotel (which should start meaningfully somewhere in Q4). This I will is one of the reason of why re-rating looks difficult unless investors turn head to toe and buy everything in hospitality industry.
Posts tagged Value Pickr
Varroc Engineering Ltd (11-06-2024)
Today up 10% big investors are accumulating!!
Avenue Supermart: a compounding machine? (11-06-2024)
So my view is different here. If you see the numbers of the food division which are published separately you will see that this division is not earning profit. I think this company is trying to build a reason for customers to visit their stores and do that by selling what customers and kids love to eat at prices where they will break even and what will keep attracting footfalls to the store. Long term I don’t think they are doing this to add to their profits but just make people come more to their stores
KEI Industries Ltd – A consistent performer over the last decade (11-06-2024)
Hi…I got this stage analysis of going into stage 3 from current stage 2…But
trailing stop loss adjusted on weekly basis,kindly elaborate
Annapurna Swadisht Ltd – A Swadisht FMCG investment? (11-06-2024)
but the shares got listed in oct 2022. this jump is in august 2023?
KEI Industries Ltd – A consistent performer over the last decade (11-06-2024)
Valid question @Raghav_Gupta. KEI has an A class management, good growth visibility for next few years, solid moat in UHV cables and industry having tailwinds. Perfect storm (+ve one) to prop up PE. Look at the entire industry - Polycab, KEI, Universal, Finolex - all of them have been related in the last 18-24 months. Sales and Profit growth CAGR for last 3Y > 5Y > 10Y for all of them which clearly indicates the sector is in tailwinds.
I agree with @Parakh on using some technical indicators to choose an exit. Only way to sleep peacefully if you have a high allocation of your portfolio to cables sector.
Jyoti Resins & Adhesives Limited (with bloated reserves) (11-06-2024)
Probably, they were adressing market size in those states.
Shabdon se zyada bhavnaon ko samjhna hoga. Reading between the words rather than lines
KEI Industries Ltd – A consistent performer over the last decade (11-06-2024)
One of the exit strategy is the whole sector doing unwell or the utilisation capacity is 100% and sales are flat and management won’t do capex…
But that seems highly unlikely.Cables and wires are proxy to Railways, Industries,power sectors till next 10 years.
Annapurna Swadisht Ltd – A Swadisht FMCG investment? (11-06-2024)
That jump is due to listing of the shares. Pre-listing PE should not be looked at.
Kontor Space Limited (11-06-2024)
One issue I find in this industry is that it is a very low entry barrier industry which can face unorganised competition as I know of many unlisted players that operate at a smaller scale, when these co-working spaces earn higher returns on capital more competition will get attracted to kind of replicate their model of giving value added features such as high speed internet, cafe, security guards etc.