(Kolkata’s Arun Mukherjee, who dropped out of college to turn a full-time investor at an early age, and Soumya Malani, a London School of Economics alumnus, have come to be known as smallcap aficionados within India’s investor community. They would show up at most AGMs, visit the remotest factories of a company and go chasing end-users to understand their experience with a product in their passionate hunt for good smallcaps. Arun and Soumya share their experiences with such companies from th ..
To start with, we aren’t votaries of hotel companies. Leveraged to the core, bleeding with losses, siphoning of funds, under-reporting with no prior history of wealth generation are big turn-offs.
Including its ongoing project of the Rajarhat hotel in Kolkata, the company has beautiful properties, operates in eight different locations with about 400 rooms under its belt. The company has further expansion plans to have an inventory of 600 rooms in next 2-3 years.
From a valuation perspective, it is important to understand the dynamics of hotel stocks. On a EV (enterprise value)-to-Ebitda basis, smaller hotels like Oriental Hotels, Taj GVK Hotels and Sayaji Hotels command multiples ..
Recently-listed Lemon Tree HotelsNSE -2.29 % quotes at over 25 times its expected FY20 EV/Ebitda. Debt is a major issue in this sector and so is interest cost. The listed hotel space in India has over Rs 15,000 crore debt and servicing that loan pile does take away quite a bit of profit.
Profitability has remained a major concern in the hotels space. Even though the listed hotel space logs over Rs 10,000 crore in revenues (consolidated), the companies are yet to even break even, put tog ..
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