Mehabe score: 4 G Factor: 5 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 5 and Piotski score of 2.
Description
Oriental Hotels Ltd is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.[1] Site:ORIENTHOT Main Symbol:ORIENTHOT
Stock trades at 52.3, above its 50dma 44.65. It also trades above its 200dma 37.3. The stock remains bullish on techicals
The 52 week high is at 65.90 and the 52week low is at 21.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 3.84 times its book value
– 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.
-Earnings include an other income of Rs.3.65 Cr.
Competition
– The industry trades at a mean P/E of 131.3x. Indian Hotels Co trades at the industry’s max P/E of 145.92x. ORIENTHOT trades at a P/E of x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 5.0. ORIENTHOT has a G-Factor of 5 and Piotski scoreof 2.
– Average 1 month return for industry is 12.4%. The max 1- month return was given by Oriental Hotels: a return of 38.91 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 52.34 cr compared to Rs 15.8 cr for period ended Sep 2020, a rise of 231.3% .
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Company reported operating profit of Rs 4.58 cr for period ended Sep 2021 and operating profit margin at 8.8 % 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 -0.42 compared to Rs -1.23 for previous quarter ended Jun 2021 and Rs -1.31 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 173.0 cr for period ended TTM vis-vis sales of Rs 116.0 cr for the period ended Mar 2021, a healthy growth of 32.9%. The 3 year sales cagr stood at -20.7%.
Operating margins expanded to -1.0% for period ended TTM vis-vis -28.0% for period ended Mar 2021, expansion of 2700.0 bps.
Net Profit reported at Rs -46.0 cr for period ended TTM vis-vis sales of Rs -71.0 cr for the period ended Mar 2021, rising 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 115% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of -31% over the last 3 Years. – The compounded profit growth on a TTM basis is 0% 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 0.03% vis-vis 0.0% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 22.26% vis-vis 22.06% for Sep 2021
Conclusion
– is expected to give good quarter – Stock is trading at 3.84 times its book value
– 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.
-Earnings include an other income of Rs.3.65 Cr.
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 44.65 and is trading at 52.3 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
