Domestic Benchmark Indices started in the green on Friday. In the past year, the BSE Sensex gained nearly 12% and the NSE Nifty 50 gained 11.40%. However, here are a few Tata Group stocks that rallied more than 40% and outperformed the benchmark indices:
Oriental Hotels Ltd
Oriental Hotels Ltd is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts. Its properties are marked by the Taj Group of Hotels.
In the past year, the company’s share price increased from ₹ 59.00 apiece to ₹ 90.40, indicating an increase of 53.22%, outperforming the benchmark indices.
The company reported a consolidated profit of ₹ 18 crore for the fourth quarter ended March 31, 2023, against a profit of ₹ 1.4 crore posted in the corresponding quarter last year. For the entire financial year, it reported a profit of ₹ 55.49 crore against a loss of ₹ 12.84 crore posted in the previous financial year (FY22).
With a market capitalization of ₹ 1,610 crores, Oriental Hotels is a small-cap company. It has a low return on equity of 11.09% and an ideal debt-to-equity ratio of 0.40. Its shares were trading at a price-to-earnings ratio (P/E) of 29.65, which is lower than the industry P/E of 34.41, indicating that it might be undervalued as compared to its peers.
Tejas Networks Ltd
Tejas Networks Ltd is a global R&D-driven telecom equipment company that designs, develops and manufactures high-performance optical and data networking products that are used by telecom service providers, utilities, government and defence networks.
In the past year, the company’s share price increased from ₹ 472.05 apiece to ₹ 704.00, indicating an increase of 49.14%, outperforming the benchmark indices.
Tejas Networks’ loss narrowed to ₹ 11.47 crore for the fourth quarter ended March 31, 2023, against a loss of ₹ 49.62 crore posted in the corresponding quarter last year. For the entire financial year, its loss narrowed to ₹ 36.41 crore against a loss of ₹ 62.71 crore posted in the previous financial year (FY22).
With a market capitalization of ₹ 11,828 crores, Tejas Networks is a small-cap company. It has a negative return on equity of 1.49% but it is almost debt-free with
an ideal debt-to-equity ratio of 0.02. Its shares were trading at a price-to-earnings ratio (P/E) of 202.57, which is significantly higher than the industry P/E of 22.09, indicating that it might be overvalued as compared to its peers.
Indian Hotels Company Ltd
The Indian Hotels Company Ltd is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts under various brands like Taj, Vivanta, SeleQtions, Ginger, Expressions and so on.
In the past year, the company’s share price increased from ₹ 234.55 apiece to ₹ 396.65, indicating an increase of 69.11%, outperforming the benchmark indices.
The company reported a consolidated profit of ₹ 338.84 crore for the fourth quarter ended March 31, 2023, against a profit of ₹ 71.57 crore posted in the corresponding quarter last year. For the entire financial year, it reported a profit of ₹ 1052.83 crore against a loss of ₹ 264.97 crore posted in the previous financial year (FY22).
With a market capitalization of ₹ 56,205 crores, Indian Hotels Company is a large-cap company. It has a low return on equity of 13.33% and an ideal debt-to-equity ratio of 0.39. Its shares were trading at a price-to-earnings ratio (P/E) of 56.07, which is lower than the industry P/E of 33.41, indicating that it might be overvalued as compared to its peers.
Written By Simran Bafna
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