The shares of a Microcap Company engaged in the Hospitality business and related services, such as hotel consultancy and setup, climbed over 10 percent today after the company signed an agreement to manage and operate Uttarkhand Hotel.
Price Action
On Friday, the shares of Kamat Hotels Ltd., which had a total market capitalization of Rs 918.45 Crores, soared 10.7 percent to reach an Intraday high of Rs 314.9 per share. As of 1:00 pm, the shares were trading at Rs 312.8 per share, which was 9.93 percent higher than the previous close of Rs 284.5.
The shares of Kamat Hotels Ltd have generated an impressive three-year return of 441 percent and a stellar return of 1,002 percent in the past five years.
What Happened
In a press release dated March 7, 2025, Kamat Hotels Ltd announced that it has signed an agreement to manage and operate The Orchid Hotel, a luxury property located in Rishikesh, Uttarakhand.
The hotel will offer 54 rooms set amidst dense forests and will feature a high-end spa, a swimming pool, a modern recreation center, and a dedicated yoga center. Additionally, the property will include a fully equipped conference room, making it an ideal venue for both corporate retreats and wedding celebrations.
Executive Director Mr. Vishal Kamat mentioned that the hotel is expected to be fully operational by July 2025. Dr. Vithal Kamat, Chairman & Managing Director, stated that this new opening will strengthen the company’s presence in Uttarakhand’s hospitality sector, with The Orchid Hotel being the second in the region. The first hotel was signed in Dehradun.
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Previous Agreement
In February 2025, the company signed a Management Agreement for the management and operation of The Orchid Hotel located at Mandavi in the Kutch District of Gujarat. The Hotel is expected to start its operations by December 2027.
Union Budget 2025 on Tourism & Hospitality
The Union Budget 2025-26 allocates Rs 2,541.06 crore to boost India’s tourism sector through infrastructure development and skill enhancement. Fifty top tourist destinations will be developed in partnership with state governments. The budget also includes Mudra loans for homestays and includes hotels in the infrastructure list for easier financing. Additionally, the budget emphasizes promoting spiritual and medical tourism, with initiatives like “Heal in India” through private sector collaboration.
Financials
The company reported a jump of 29 percent YoY in Revenue from Operations from Rs 86.13 Crores in Q3FY24 to Rs 110.89 Crores in Q3FY25. However, their Net Profits declined by 37 percent YoY from Rs 41.57 Crores to Rs 26.18 Crores over the same period.
About Kamat Hotels Ltd
Kamat Hotels Ltd is engaged in the hospitality business and has hotels, restaurants, resorts, clubs, etc, in the states of Maharashtra, Goa, and Orissa. It also provides hotel consultancy, set-ups, and other related services. It has multiple brands, including The Orchid, Fort Jadhavgadh, Lotus, and IRA by Orchid.
Written By Adhvaitha Nayani
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