The hospitality sector has been negatively impacted by the covid 19 pandemic. Lockdowns across the country induced restrictions on travel. This led to the hospitality companies reporting negative revenue and profit growth which ultimately drove the stock price down.
With the companies gaining momentum, here are 3 hospitality stocks that reached a new 52-week high on Monday:
Indian Hotels Company Limited
The shares of Indian Hotels Company Limited opened at Rs 331 on Monday and zoomed by 4.3 percent to reach its new 52-week high of Rs 346.85 in the early hours. The stock reached its previous 52-week high of Rs 337 in September.
In the past five days, the stock has appreciated by 8 percent. In January 2022, the stock traded at Rs 184 a piece on NSE. From there it has spiked up to the current levels and delivered a return of 87 percent.
In Q1FY23, their total revenue surged by 250 percent to Rs 1,293.2 crore as against Rs 752 crores in Q1FY22 and a rise of 35 percent from the previous quarter when it earned Rs 954 crores.
In the quarter under review, their total net profit stood at Rs 170 crore as against a loss of Rs 277 crore in Q1FY22. On a sequential basis, their net profit surged by 130 percent up from Rs 74 crores.
Indian Hotels Company, Part of Tata Group, is primarily engaged in the business of owning, operating & managing hotels, palaces, and resorts. The company currently has 242 hotels, of which 179 are operational and 63 are in the pipeline. In India, IHCL has 163 hotels.
Lemon Tree Hotels Limited
The hotel company’s shares began trading at Rs 86 on Monday and soared by 3.6 percent to a new 52-week high of Rs 90 in the early hours. The stock hit a 52-week high of Rs 88 in September of this year.
In the past five days, the stock has appreciated by 6 percent. In January 2022, the stock traded at Rs 48 a piece on NSE. From there it has spiked up to the current levels and delivered a return of 84 percent. In a year it has zoomed by 94 percent.
Their overall income increased by 250 percent to Rs 192 crore in Q1FY23, compared to Rs 98 crore in Q1FY22, and by 96 percent from the previous quarter, when it earned Rs 127 crores.
In the period, their net profit stood at Rs 13.85 crores compared to a loss of Rs 1.8 crores in the year-ago period. In the march quarter, their net losses stood at Rs 13.85 crores.
Lemon Tree Hotels Ltd is the largest mid-priced and the third largest overall hotel chain in India. The company operates a network of 8,489 rooms in 87 hotels across 54 destinations.
Chalet Hotels Limited
The shares of the company opened at Rs 353 and zoomed by 6.6 percent in the early hours to reach its new 52-week high of Rs 377 on Monday. The stock reached its previous 52-week high of Rs 362 in September.
In the past week, the shares have surged by 14 percent. On a Year-to-date (YTD) basis, the stock has zoomed by 71 percent, as its price rose from Rs 218 in January to the current levels.
The company reported its highest ever total income of Rs 192 crores in Q1FY22 as compared to Rs 44.28 crores in the same period a year earlier. In the previous quarter, their total revenue was at Rs 127 crores.
Their earnings were positive as their net profit stood at Rs 13.85 crores in the quarter under review as against a loss of Rs 40 crores in the previous year and a loss of Rs 24.62 crores in the previous quarter.
Chalet Hotels is engaged in the business of hospitality (hotels), commercial and retail operations, and real estate development. The company has a portfolio of 7 hotels across four major cities in India.
Conclusion:
The hotel industry has seen a dramatic downward trend since the onset of the pandemic. However, things seem to be coming back to normal. Analysts are optimistic about the sector and expect the occupancy rate and average room rate (ARR) to return to pre-covid levels by the end of CY22 and mid-CY23, respectively.
“Leisure locations continue to outperform urban markets; however, city hotels have also seen an upswing in demand. Return of international travel will further benefit the industry in months ahead,” said the Jefferies report.
“FY23 began on a strong note for the hotel sector in terms of growth and margin expansion,” said a report from ICICI Direct Research. “With the full re-opening, corporate demand and MICE (meeting, incentive travel, conferences, and exhibitions) segment also joined the growth bandwagon in Q1FY23, while leisure continued to perform well, ”it added.
Written by Anoushka Roy
Disclaimer
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