Board Likely to Announce Bonus Issue on June 14, 2024; Heavy Buying, This Hotel Stock Rallied Over 6 per cent; Must Watch!
The company's shares have delivered a return of over 50 per cent to their shareholders.
This Small-Cap hotel company primarily owns premium luxury hotels under the luxury 'Oberoi' and five-star 'Trident' brands. It is a joint venture between the Oberoi Family and the Rajan Raheja Group.
Recent Update:
The company has informed its shareholders that the meeting of the Board of Directors of the Company will be held on Friday, 14th June 2024, to consider and recommend, the capitalization of reserves by issuing bonus Shares to the Equity Shareholders of the Company, subject to the approval of the shareholders.
Share Performance:
On Friday, this small-cap EIH Associated Hotels’ stock opened at Rs 698 and closed at Rs 694.40 per share on the BSE, representing an increase of 3.95 per cent. The stock has delivered a return of around 98 per cent in the past 3 years. The current market capitalization of the company stands at Rs 2199.19 crore. The company's stock was among the Top Gainers within the top 10 stocks from the same sector.
Financial Performance:
As per Quarterly Results in Q3 FY24, EIH Associated Hotels reported revenues of Rs 132 crore, reflecting a 22.88 per cent YoY growth compared to the same quarter in the previous year, when the revenue stood at Rs 108 crore. The company posted an operating profit of Rs 50 crore for the quarter, in contrast to an operating profit of Rs 32 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 37 crore, compared to a net profit of Rs 26 crore in the same period last year.
Furthermore, the company has announced a dividend of Rs 6 per share as a final dividend for FY24.
The company’s ROCE and ROE are 25.2 per cent and 18.9 per cent while the shares are trading at a PE of 27.1 times in the market.
Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ's 'Value Pick' service recommends long-term stocks based on Value Investing Philosophy. If this interests you, do download the service details here.