High ROE & high ROCE multibagger stock; Board likely to announce bonus shares!

The stock gave multibagger returns of 120 per cent from its 52-week low of Rs 92.53 per share.

Sinclairs Hotels Ltd informed that a meeting of the Board of Directors of the company is scheduled to be held on Friday, December 22, 2023, to consider the proposal for a bonus issue of equity shares.

Sinclairs Hotels has 4-star properties in eight locations in India - 5 in West Bengal and one each at Ooty in Tamil Nadu, Port Blair in the Andamans and Gangtok in Sikkim. The company owns and operates hotels/resorts at prime locations in Burdwan, Darjeeling, Dooars, Kalimpong, Ooty, Port Blair Siliguri and Gangtok.

The company’s Blue Chip Corporate Customer Base includes ITC, Nestle, Sun Pharma, Axis Bank, LIC, etc. The co. also has excellent business relations with various travel Aggregators/ agents such as MakeMyTrip, Goibibo, Thomas Cook, Sita, etc. 

Today, shares of Sinclairs Hotels Ltd plunged 6.41 per cent to Rs 192.10 per share with an intraday high of Rs 204.90 and an intraday low of Rs 195.30. The stock’s 52-week high is Rs 220.85 and its 52-week low is Rs 92.53. The shares of the company saw a spurt in volume by more than 2.81 times on BSE.

The company has market cap of over Rs 500 crore. According to Quarterly Results, the net sales increased by 1.1 per cent to Rs 8.52 crore and net profit decreased by 18.5 per cent to Rs 1.27 crore in Q2FY24 over Q2FY23. In its half-yearly results, the net sales increased 1.1 per cent to Rs 26.98 crore and net profit increased by 33.8 per cent to Rs 9.75 crore in H1FY24 over H1FY23.

The shares of the company have an ROE of 26.7 per cent and an ROCE of 34 per cent. The stock gave multibagger returns of 120 per cent from its 52-week low of Rs 92.53 per share. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.