India’s hotel industry has witnessed tremendous growth in recent years, fueled by rising disposable incomes and a burgeoning middle class. As more people have the financial means to travel, the demand for accommodation has surged. This momentum is further amplified by a growing interest in domestic and international tourism, with travelers seeking diverse experiences in India’s cities, beaches, and heritage sites.
Tourism Surge and Government Support
The influx of domestic and international tourists has driven the need for more hotels, ranging from budget options to luxury resorts. The government’s active promotion of tourism through initiatives like “Incredible India” and simplifying visa processes has made the country more accessible to travelers. Additionally, the rising travel enthusiasm among younger generations, coupled with modern infrastructure developments, ensures a thriving hotel industry in the years to come.
Share Price
The shares of Benares Hotels Limited are currently trading at Rs. 9,115 up by 10.21% from its previous close of Rs. 8,270. The stock also touched an intraday high of Rs. 9,400 as of January 15, 2025.
Q3 Results
Benares Hotels Ltd has shown a strong financial performance between December 2023 and December 2024. The company’s sales increased from ₹34 crore in Dec 2023 to ₹39 crore in Dec 2024, reflecting a growth of approximately 14.7%. This rise in revenue has positively impacted the company’s EBITDA, which grew from ₹16 crore in Dec 2023 to ₹19 crore in Dec 2024, a growth of 18.75%.
The company also improved its operating profit margin (OPM), which increased from 45% in Dec 2023 to 48% in Dec 2024. This indicates better cost management and operational efficiency. Net profit has also grown, rising from ₹11 crore to ₹14 crore, a growth of 27.27%. Benares Hotels Ltd demonstrated impressive year-on-year growth, showcasing strong financial health and operational effectiveness.
Key Metrics
Benares Hotels Ltd showcases strong financial metrics, reflecting its robust performance. The Price-to-Earnings (PE) ratio of 30.2 suggests that the stock is valued at a premium, indicating market confidence in the company’s growth prospects. The company’s market capitalization stands at ₹1,172 crore, highlighting its significant presence in the market.
With a Return on Capital Employed (ROCE) of 40.6%, Benares Hotels Ltd demonstrates excellent capital efficiency and profitability. The Debt-to-Equity ratio of 0.03 indicates a low leverage position, suggesting minimal reliance on debt for financing. The Price-to-Book Value (P/BV) ratio of 8.19 reflects the market’s high valuation of the company’s assets. Additionally, a PEG ratio of 0.9 suggests that the stock is fairly valued relative to its growth rate, indicating good investment potential.
About the Company
Incorporated in 1971, Benares Hotels Ltd (BHL) is a prominent player in the hospitality industry, operating hotels under prestigious brands. It is a subsidiary of The Indian Hotels Company Limited, part of the Tata Group. BHL manages three key properties: Taj Ganges and Nadesar Palace in Varanasi, and Ginger Hotel in Gondia, Maharashtra. The Taj Ganges and Nadesar Palace in Varanasi offer 144 rooms and suites, providing luxury and heritage experiences, while Ginger Hotel in Gondia, has around 34 rooms catering to budget-conscious travelers.
Benares Hotels Ltd is known for its high standards of service and hospitality, and its strategic location in key tourist destinations like Varanasi further enhances its appeal. The company’s association with the Tata Group further solidifies its reputation in the Indian hospitality sector.
Written By: Dipangshu Kundu
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