Synopsis:
Gujarat Hotels Ltd reported a 30% increase in Q2 revenue to ₹0.92 crore YoY, while its net profit grew 65% YoY to ₹1.19 crore.
The shares of the micro-cap company specializing in the hospitality industry, specifically operating hotels and related services, jumped by nearly 20 percent to hit the upper circuit after announcing its September quarterly results.
With a market capitalization of 108.95 Crores on Tuesday, the shares of Gujarat Hotels Ltd jumped by upto 19.8 percent, reaching a high of Rs. 318.90 compared to its previous close of Rs. 266.15.
What Happened
Gujarat Hotels Ltd, engaged in the hospitality industry, specifically operating hotels and related services, has announced its Q2 results as follows:
Its Revenue from operations rose by 30 percent YoY from Rs. 0.71 Crores in Q2FY25 to Rs. 0.92 Crores in Q2FY26, and it rose by 14 percent QoQ from Rs. 0.81 Crores in Q1FY26 to Rs. 0.92 Crores in Q2FY26.
Its Net Profit YoY rose by 65 percent from Rs. 0.72 Crores in Q2FY25 to Rs. 1.19 Crores in Q2FY26, and it declined by 15 percent QoQ from Rs. 1.40 Crores in Q1FY26 to Rs. 1.19 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 3.14, compared to Rs. 3.70 in the previous quarter.
The company boasts a strong ROCE of 15.0%, with a favorable PEG ratio of 0.75, indicating solid growth relative to its valuation. Its stock P/E stands at 18.8, significantly lower than the industry average of 35.8, reflecting potential value. Additionally, the company maintains a debt-to-equity ratio of 0.00, showcasing a strong, debt-free balance sheet.
Company Overview & Others
Gujarat Hotels Ltd is a hospitality company that owns the Welcomhotel Vadodara, which is operated by ITC Hotels Limited under a license agreement. Incorporated in 1982, it is an associate company of ITC Limited, with ITC holding a significant stake, and the company’s primary revenue comes from the license fees it receives from its operator. The company’s business is focused on hoteliering, with its sole asset being the hotel in Vadodara.
The hotel offers lodging and hospitality services, with facilities such as executive, corporate, and standard rooms, as well as a fine dining restaurant. Gujarat Hotels Ltd operates purely in the hoteliering segment, focusing all its business activities on running this iconic property.
With a strategic emphasis on expanding its portfolio, the company aims to capitalize on the growing demand for hospitality services in key urban centers and tourist destinations across India. Its operational excellence is supported by a strong management team, modern amenities, and a commitment to guest satisfaction, ensuring that it remains a trusted name in the hospitality space.
Written by Sridhar J
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