Mehabe score: 3 G Factor: 4 Piotski Score: 3 The stock has a rating SELL. 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 4 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. [1] Site:ASIANHOTNR Main Symbol:ASIANHOTNR
Stock trades at 79.1, below its 50dma 79.79 and below its 200dma 79.38. The stock remains bearish on technicals
The 52 week high is at 105.80 and the 52week low is at 56.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.51 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -7.21%
-The company has delivered a poor sales growth of -21.34% over past five years.
– has a low return on equity of -11.76% for last 3 years.
-Promoters have pledged 99.68% of their holding.
-Debtor days have increased from 39.46 to 77.70 days.
Competition
– The industry trades at a mean P/E of 62.8x. Indian Hotels Co trades at the industry’s max P/E of 100.58x. ASIANHOTNR trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 5.0. ASIANHOTNR has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is 0.3%. The max 1- month return was given by Chalet Hotels: a return of 8.79 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 35.0 cr compared to Rs 11.0 cr for period ended Sep 2020, a rise of 218.2% .
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Company reported operating profit of Rs 4.0 cr for period ended Sep 2021 and operating profit margin at 11.4 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Sep 2021 is Rs -162.14 compared to Rs -20.65 for previous quarter ended Jun 2021 and Rs -16.83 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 101.0 cr for period ended TTM vis-vis sales of Rs 73.0 cr for the period ended Mar 2021, a healthy growth of 27.7%. The 3 year sales cagr stood at -28.3%.
Operating margins expanded to -10.0% for period ended TTM vis-vis -27.0% for period ended Mar 2021, expansion of 1700.0 bps.
Net Profit reported at Rs -990.0 cr for period ended TTM vis-vis sales of Rs -694.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 -23.0% compared to -12.0% over the last 3 Years. – The stock has given a return of 8% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -32% vis-vis a compounded sales growth of -36% over the last 3 Years. – The compounded profit growth on a TTM basis is -626% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.0% vis-vis 0.0% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 41.96% vis-vis 41.96% for Sep 2021
Conclusion
– Stock is trading at 0.51 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -7.21%
-The company has delivered a poor sales growth of -21.34% over past five years.
– has a low return on equity of -11.76% for last 3 years.
-Promoters have pledged 99.68% of their holding.
-Debtor days have increased from 39.46 to 77.70 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 79.79 and is trading at 79.1. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
