Hospitality stocks are investments in companies in the hospitality industry, which include lodging, food and beverages, tourism, and more. These stocks can be found in a variety of businesses, including hotels, restaurant chains, and casinos.
Here are two hospitality stocks that have returned up to 72 percent in the 11 days since January 1, 2024.
Apollo Sindoori Hotels Ltd
Apollo Sindoori Hotels Limited is a hospitality management and support services company based in India. From food services to kitchen planning and management, the company manages a wide range of hospitality services.
Apollo Sindoori Hotels Ltd is growing due to a number of factors, including its proximity to the Ayodhya Ram Temple. The company is expected to benefit significantly from the Ayodhya Ram Temple’s inauguration.
In order to accommodate visitor vehicles in Tedhi Bazar, the company is building a multi-level parking facility in Ayodhya. The structure is over 3,000 square meters in size, with a rooftop area dedicated to restaurants that can accommodate more than 1,000 devotees at once.
Apollo Sindoori Hotels Ltd is a micro-cap stock with a market capitalization of Rs 672 Crores. The share price of the company rose around 72 percent in the last 11 days since January 1, 2024.
Looking at the company’s financial statements, operating revenues fell 96 percent from Rs 64.99 crore in Q2FY23 to Rs 127.59 crore in Q2FY24, Furthermore, net profit increased 49 percent from Rs 3.54 crore to Rs 1.8 crore during the same period.
The company has a low price-to-earnings ratio of 33 with a low debt-to-equity ratio of 0.87, a return on equity of 15 percent, and a return on capital employed of 18 percent.
On Thursday the company’s share price hit its 52-week high of Rs 2,635.50 per share from its previous close of Rs 2,395.95.
Praveg Ltd
Praveg Limited is an exhibition management company based in India. The Company is a service provider with a diverse portfolio that includes exhibition and event management, tourism and hospitality, and publishing.
Praveg Limited had established a luxurious resort along the Brahma Kund in Ayodhya. Praveg’s ultra-luxurious tent city has 30 tents and one restaurant. The company is also being watched because it recently won a contract to open tents in Lakshadweep.
Praveg Ltd is a small-cap company with a market capitalization of Rs 2,720 crores. The share price of the company rose around 52 percent in the last 11 days since January 1, 2024.
However, according to the company’s financial statements, operating revenues fell 18 percent from Rs 17.27 crore in Q2FY23 to Rs 14.03 crore in Q2FY24. In comparison, net profit decreased 81 percent during the same period, from Rs 11.51 crore to Rs 1.8 crore.
The company has a low price-to-earnings ratio of 139, also the company is debt free, with a return on equity of 43 percent, a return on capital employed of 54 percent, and a net profit margin of 33 percent.
The share price of the Praveg Limited company rose by 4.6 percent to its intraday high of Rs 1,225 per share from its previous close of Rs 1,171 on Thursday.
Written by Sriram KV
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