Shares of this multibagger hospitality stock jumped approximately 7 percent in Monday’s trading session after the company’s Board of Directors fixed the record date for the 1:1 bonus issue.
With a market capitalization of Rs 782.26 crores, the stocks of Advani Hotels & Resorts (India) Limited started their trading session on Monday at Rs 174.25 and currently trade at Rs 169.25, gaining around 7 percent as compared to the previous closing levels of Rs 157.95 apiece.
Such bullish stock price behavior in the company’s share price was observed after a recent regulatory filing with the Bombay Stock Exchange (BSE) intimating the Board of Directors (BOD) fixing Wednesday, 20th March 2024, as the Record Date for determining the eligibility of Shareholders for the entitlement of issue of Bonus Equity Shares in the ratio of 1:1.
The same means one new fully paid-up equity share of Rs 2 each for every existing fully paid-up Equity Share of Rs 2 each held as on the record date.
During the recent financial quarters, the company’s prime indicators of business, viz, operating revenues as well as after-tax profit figures, showed a stellar performance with the former increasing from Rs 17.25 crores during Q2FY24 to Rs 32.29 crores during Q3FY24, and the latter, during the same period, rising sharply from Rs 45 lakhs to Rs 9.31 crores.
The standalone ratio analysis exhibits a great jump in numbers with the return on equity (RoE) increasing from 13.05 percent during FY21-22 to 45.60 percent during FY22-23 and the return on capital employed (RoCE), keeping the timeframe the same, shifting from Rs 15.63 percent to 55.41 percent.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of approximately 135 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh in the company’s stock a year ago, it would have converted to Rs 2.35 lakhs.
Incorporated in 1987, Advani Hotels & Resorts (India) Limited, engaged in the lodging business sector, provides rooms, liquor, and food & beverages. The company owns as well as operates a five-star deluxe resort located in Goa, i.e., “Caravela Beach Resort”.
Written by Amit Madnani
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