Mehabe score: 2 G Factor: 3 Piotski Score: 3 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 3.
Description
Asian Hotels (North) Limited was established in 1980. The Company primarily operates in one business segment i.e. Hospitality/Hotel Operations, and set up their room facilities for guests during the Asian Games in the year 1982. The Hotel started operating commercially in 1983. #
Stock trades at 88.8, above its 50dma 82.48. It also trades above its 200dma 72.67. The stock remains bullish on techicals
The 52 week high is at 105.80 and the 52week low is at 44.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.31 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.63% over past five years.
– has a low return on equity of -6.02% for last 3 years.
-Promoters have pledged 99.72% of their holding.
-Promoter holding has decreased over last 3 years: -14.51%
Competition
– The industry trades at a mean P/E of 80.6x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. ASIANHOTNR trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. ASIANHOTNR has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -2.6%. The max 1- month return was given by Indian Hotels Co: a return of 4.5 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 32.0 cr compared to Rs 55.0 cr for period ended Mar 2020, a fall of 41.8%
Company reported negative operating profit of Rs -2.0 cr for period ended Mar 2021. For same period last year, operating profit was 7.0
The EPS for Mar 2021 was Rs -320.61 compared to Rs -5.77 for previous quarter ended Dec 2020 and Rs -14.19 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 73.0 cr for period ended Mar 2021 vis-vis sales of Rs 252.0 cr for the period ended Mar 2020, a fall of 245.2%. The 3 year sales cagr stood at -35.7%.
Operating margins shrank to -31.0% for period ended Mar 2021 vis-vis 22.0% for period ended Mar 2020, contraction of 5300.0 bps.
Net Profit reported at Rs -694.0 cr for period ended Mar 2021 vis-vis sales of Rs -59.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -10.0% compared to -6.0% over the last 3 Years. – The stock has given a return of 65% on a 1 Year basis vis-vis a return of -29% over the last 3 Years. – The compounded sales growth on a TTM bassis is -65% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is -180% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.01% vis-vis 0.01% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.87% vis-vis 41.87% for Dec 2020
Conclusion
– Stock is trading at 0.31 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.63% over past five years.
– has a low return on equity of -6.02% for last 3 years.
-Promoters have pledged 99.72% of their holding.
-Promoter holding has decreased over last 3 years: -14.51%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 82.48 and is trading at 88.8 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
