On Tuesday, the share price of the microcap company rose 4.5 percent to its intraday high of Rs 215 per share from its previous close of Rs 205.65 after the company announced the issue of bonus shares.
According to Sinclairs Hotels Ltd, the company board has approved the issuance of bonus shares. Investors will receive an additional share for every one they own (1:1). The company plans to hold a meeting on January 18, 2024, to get the approval of its shareholders.
Furthermore, Sinclairs Hotels Limited recently completed a buy-back of 15 lakh equity shares each for Rs 200 per share, totaling Rs 30.4 crores on October 25, 2023.
The financials of Sinclairs Hotels Ltd’s net revenue increased by 2 percent year on year, from Rs 8.35 crore in Q2FY23 to Rs 8.52 crore in Q2FY24. Their revenue fell by 53 percent sequentially from Rs 18.46 crore in Q1FY24 to the current levels.
Furthermore, the company’s net profit decreased by 18.5 percent year on year, from a net profit of Rs 1.56 crores in Q2FY23 to a net profit of Rs 1.27 crores in Q2FY24. Their profit increased by 85 percent sequentially from Rs 8.48 crore in Q1FY24 to current levels.
Sinclairs Hotels is a microcap company with a market capitalization of Rs 572 crores. The promoter owns 62 percent of the company, while the general public owns 37 percent.
The company’s share price has increased by 77 percent in the last six months and by 100 percent year to date. For instance, if an investor invested Rs 1 Lakh a year ago the current value of the investment would be Rs 2 Lakhs.
In comparison to peers, the company has a low price-to-earnings ratio of 15, is debt-free, has a return on equity of 26 percent, a return on capital employed of 34 percent, and a net profit margin of 58 percent.
Sinclairs Hotels has four-star properties in eight Indian cities, including five in West Bengal. Ooty in Tamil Nadu, Port Blair in the Andamans, and Gangtok in Sikkim each have one. The company owns and operates hotels and resorts in Burdwan, Darjeeling, Dooars, Kalimpong, Ooty, Port Blair, Siliguri, and Gangtok.
Written by Sriram KV
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