Shares of a hospitality company shot up 4 percent to reach an intraday high of ₹ 495.00 apiece on the National Stock Exchange (NSE) after it announced robust results for the first quarter of the financial year 2023-24. Its shares were trading at ₹ 483.00 apiece at 11:58 AM.
Chalet Hotels is an owner, developer, asset manager and operator of luxury hotels, including serviced residences located in Mumbai, Hyderabad, Bengaluru and Pune. Its other businesses include real estate and rental businesses.
According to an exchange filing, the company reported a 210.43 percent increase in its profit to ₹ 88.66 crores in the June quarter (Q1FY24), against ₹ 28.56 crores reported in the corresponding quarter last year (Q1FY23). Its revenue climbed 22.83 percent to ₹ 310.77 crores in Q1FY24, as compared to ₹ 253.01 crores in Q1FY23.
With a market capitalization of ₹ 9,741 crores, Chalet Hotels is a small-cap company. It has a low return on equity of 12.72 percent. Its shares were trading at a price-to-earnings ratio (P/E) of 53.15, which is higher than the industry P/E of 33.36, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 71.65 percent stake in it, followed by mutual funds with 19.96 percent, retail investors with 5.42 percent and foreign institutions with 2.97 percent.
In the past two years, the company’s share price increased from ₹ 177.00 to ₹ 495.00, delivering multibagger returns of 180 percent. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.80 lakhs today!
Written by Simran Bafna
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