Shares of this Hospitality stock under the ‘micro-cap’ category jumped around 7 percent in Tuesday’s trading session after the company launched a Hotel in the hill town of Mcleodganj, Himachal Pradesh.
With a market capitalization of Rs 936.16 crores, the stocks of Royal Orchid Hotels Limited opened their trading hour on Tuesday at Rs 322.35 and currently trade at Rs 341.35, jumping approximately 7 percent compared to the previous close of Rs 320.10 apiece.
Such stock price movements were observed after Royal Orchid Hotels Limited, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the opening of “Regenta Inn Luxinna, Bhagsung” located in Mcleodganj, Himachal Pradesh (HP). The new hotel is the seventh property of the company in HP.
“We are thrilled to continue expanding our presence in Himachal Pradesh, a traveler’s paradise. With a strong footprint across India, we remain committed to expanding our presence in both popular and iconic locations to redefine the hospitality landscape of the country.”, commented Mr. Philip Logan, COO of Royal Orchid & Regenta Hotels.
During the recent financial quarters, the basic business parameters of the company such as operating revenues and net profits dipped with the former reducing from Rs 68.89 crores during Q1FY23-24 to Rs 66.6 crores during Q2FY23-24 and, the latter, during the same period, shifted down from Rs 10.2 crores to Rs 7.47 crores.
The basic profitability ratios of the company such as the return on equity (RoE) as well as the return on capital employed (RoCE) increased with the former shifting from 20.19 percent during FY21-22 to 31.49 percent during FY22-23, and, the latter moving up from 20.53 percent to 35.13 percent.
As per the latest shareholding data for the September 2023 quarter, the company’s Promoters hold a 63.6 percent stake, and the Foreign Institutional Investors (FIIs) hold a 4.18 percent stake in the company.
Royal Orchid Hotels Limited is a company based in India that is engaged in the business of accommodation and food service activities including hotels, resorts, restaurants, mobile food services, and many more. The company offers a range of options for business hotels ranging from economy business hotels to luxurious five-star hotels.
Written by Amit Madnani
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