Mehabe score: 2 G Factor: 3 Piotski Score: 2 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 2.
Description
Oriental Hotels Ltd is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.#
Main Points
Hotels Portfolio
Presently, the company has a portfolio of 7 hotels with 825 rooms and 42 suites.# It operates all its brands under the IHCL brands of Taj, SeleQtions, Vivanta and Gateway.# Out of 7 hotels, 3 are owned, 2 are leased and 2 are licensed hotels.#Site:ORIENTHOTMain Symbol:ORIENTHOT
Stock trades at 38.6, above its 50dma 34.63. It also trades above its 200dma 27.79. The stock remains bullish on techicals
The 52 week high is at 43.35 and the 52week low is at 18.50
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.91% over past five years.
– has a low return on equity of -4.16% for last 3 years.
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. ORIENTHOT trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. ORIENTHOT has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 0.6%. The max 1- month return was given by Mahindra Holiday: a return of 8.54 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 52.76 cr compared to Rs 71.28 cr for period ended Mar 2020, a fall of 26.0%
Operating Profits reported at Rs 5.83 cr for period ended Mar 2021 vis-vis 9.94 for period ended Mar 2020 .
Operating Margins contracted -289.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -0.33 compared to Rs -0.6 for previous quarter ended Dec 2020 and Rs 0.06 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 116.0 cr for period ended Mar 2021 vis-vis sales of Rs 291.0 cr for the period ended Mar 2020, a fall of 150.9%. The 3 year sales cagr stood at -31.3%.
Operating margins shrank to -28.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, contraction of 4100.0 bps.
Net Profit reported at Rs -71.0 cr for period ended Mar 2021 vis-vis sales of Rs -8.0 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 -15.0% compared to -4.0% over the last 3 Years. – The stock has given a return of 92% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -60% vis-vis a compounded sales growth of -31% over the last 3 Years. – The compounded profit growth on a TTM basis is -817% 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 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 20.37% vis-vis 20.21% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.91% over past five years.
– has a low return on equity of -4.16% for last 3 years.
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 34.63 and is trading at 38.6 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
