Shares of Oriental Hotels Ltd, a Tata group company were deep in the green after the company reported its results for the January to march quarter of 2023 (Q4FY23). Its share price climbed 11.45% on Wednesday’s intraday trades to reach a 52-week high of ₹ 92.00 apiece. At 03:03 PM, its shares were trading at ₹ 89.50 up 8.42%.
The company posted a revenue of ₹ 115.56 crores in Q4FY23, indicating an increase of 69% over the corresponding quarter in the previous year. Its profit after tax (PAT) rose by 1289.84% to ₹ 17.79 crores in the latest quarter, as compared to ₹ 1.28 crores in the corresponding quarter last year.
Oriental Hotels’ portfolio comprises brands like the iconic Taj, Vivanta and SeleQtions. It has been able to significantly capture the strong revival in the industry, post-Covid.
The company reported record profits and its highest-ever EBITDA in a decade, led by a sustained increase in occupancies and average Room Rate (ARR).
“The EBITDA margin of 30.9% this fiscal is a 15-percentage point expansion over pre-Covid levels and we are delighted to announce a 50% dividend,” said Pramod Ranjan, Managing Director & CEO, Oriental Hotels.
The share price of Oriental hotels has increased by 38.25% in the past year and by 256% in the past two years, thereby giving multibagger returns. If an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 3.56 lakhs today!
With a market capitalization of 1,474 crores, Oriental Hotels is a small cap company. It has a low return on equity of 3.04% and a dividend yield of 0.52%. Its shares were trading at a price to earnings ratio of 27.15 which is lower than the industry average 34.50, indicating that the stock is undervalued as compared to its peers.
Written by Simran Bafna
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