7 years
high / low ( Rs.) : 548 / 113
5 years
Revenue & PAT figures in Rs.cr:
2008:
63 / 11
2009 : 59 /
9
2010: 62 /
11
2011: 72 /
13
2012 : 75 /
10.5
Snapshot:
4 hotels –
645 rooms
Manpower:
714
Equity :
5.4 cr
Debt : 4 cr
( short term)
MF
investments: 10 cr
Bank FD’s :
16 cr
Promoters :
88.39%
Hotel Assets:
1) Khajurao:
18 acres
104 rooms / banquet facilities for 80-7000 people – on the banks of river Khuddar
104 rooms / banquet facilities for 80-7000 people – on the banks of river Khuddar
2) Jaipur : 26
acres
Hotel Clarks Amer Jaipur is situated in a green residential
area, in the heart of the city. It lies at a distance of 2.5 kilometres from
the airport and 12 kilometres from the railway station. Has 211 rooms. One of
the most beautiful and enchanting property of U.P. Hotels Ltd.
Clarks Brij
Convention centre @ Jaipur : 50000 sq ft + attached lawn for 5000 persons
3) Agra: 8 acres
Located 2 km. from the Taj Mahal, in the heart of Agra, and
yet free from its din and bustle, The Clarks Shiraz is just 7 km. from the
Airport and 3 km. from the Railway Station.
This 5-star resort, spread over 8 landscaped acres, has 237
well-appointed and fully renovated rooms, with maximum Taj facing rooms in the
city
4) Lucknow : approx 3 acres ( not confirmed )
Conveniently located right in the side of the palace of the Nawabs and on the bank of river Gomti, Hotel Clarks Avadh Lucknow is only four kilometers from the railway station, 15 kilometers from the airport and just 1 km from the Main Shopping Area – Hazratga.
Hotel Clarks Avadh Lucknow features 98 rooms and is located on Mahatma GandhiMarg in Lucknow.
Valuation:
@ CMP of about Rs.278, the company trades at a m/cap of about 150 cr & EV of about 128 cr.
Promoters
will have to dilute their stake to 75% in the next 6-7 months or delist the
company. Considering that they own a little less than 89% ,if they opt for the
delisting option, even if the same were to happen @ 2X current market price,
i.e say Rs.550, promoters won’t have to shell out more than 35 cr.
If one thinks from the promoters point of view, it makes sense for a company sitting on about 20 cr of net cash equivalents & hotels located on prime land in 4 locations.
If one thinks from the promoters point of view, it makes sense for a company sitting on about 20 cr of net cash equivalents & hotels located on prime land in 4 locations.
Should
be interesting to watch the developments here over the next few months.
At the time of writing this report, the
author /his family have an investment interest in the stock mentioned above.
Under no circumstance does the information in this report represent a
recommendation to buy or sell the above-mentioned stock. This report has
been prepared and issued on the basis of publicly available information,
internally developed data & other sources believed to be reliable. This is
just a suggestion solely for information purposes and does not constitute a
solicitation to any person to buy or sell a security. While the information
contained therein has been obtained from sources believed to be reliable, no
responsibility (or liability) is accepted for the accuracy of its contents.
Readers using the information contained herein are solely responsible for their
actions and are advised to satisfy themselves before making any investments.
Thanks for excellent analysis. Delisting seems to be doable and very attractive property and dirt cheap valuation. Is it possible to share your e-mail id, will send my observation through email. Thanks
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