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
Royal Orchid Hotels is engaged in the business of operating and managing hotels/ resorts and providing related services, through its portfolio of hotel properties across the country.Site:ROHLTD
Market Cap:
Rs 237 cr
Price:
86.2
Trading pe:
x
Book-value:
55.7/share
Div yield:
0.00 %
Earning yield:
-5.67%
Face-value:
10.0/share
52week high:
94.80
52week low:
48.00
Technical Analysis
Stock trades at 86.2, above its 50dma 75.61. It also trades above its 200dma 69.94. The stock remains bullish on techicals
The 52 week high is at 94.80 and the 52week low is at 48.00
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.77% over past five years.
– has a low return on equity of 3.99% for last 3 years.
Competition
– The industry trades at a mean P/E of 55.8x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. ROHLTD trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. ROHLTD has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 18.1%. The max 1- month return was given by Barbeque-Nation: a return of 35.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 33.01 cr compared to Rs 48.25 cr for period ended Mar 2020, a fall of 31.6%
Operating Profits reported at Rs 2.91 cr for period ended Mar 2021 vis-vis 4.02 for period ended Mar 2020 .
Operating Margins expanded 48.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -3.42 compared to Rs -1.03 for previous quarter ended Dec 2020 and Rs -1.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 81.0 cr for period ended Mar 2021 vis-vis sales of Rs 205.0 cr for the period ended Mar 2020, a fall of 153.1%. The 3 year sales cagr stood at -24.6%.
Operating margins shrank to -14.0% for period ended Mar 2021 vis-vis 15.0% for period ended Mar 2020, contraction of 2900.0 bps.
Net Profit reported at Rs -32.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 54% on a 1 Year basis vis-vis a return of -20% over the last 3 Years. – The compounded sales growth on a TTM bassis is -54% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is -460% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 4.99% vis-vis 5.04% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.59% vis-vis 25.54% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.77% over past five years.
– has a low return on equity of 3.99% 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 75.61 and is trading at 86.2 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
