Market checks into Advani Hotels!

By Research Desk
about 8 years ago

 

The market is thrilled with the financial performance of Advani Hotels and Resorts. This company owns and operates a hotel/resort through its Ramada Caravela Beach Resort, a five star deluxe resort situated in South Goa.. The Ramada Caravela Beach Resort is spread over 24 acres, consisting of 200 rooms and nine hole golf course, a Casino and an Ayurveda Centre. The resort is located on Varca beach, Goa.

The stock price today breached the 20% UC at Rs.57.65; its 52-week high is at Rs.63.80. A thinly traded stock usually, with volumes of around 150 shares on a two-week average, today morning some 7700 shares changed hands.

Thanks to the increase in average room rates, prepayment of loan which brought down the interest cost substantially, without any capacity addition, the company posted exuberant numbers. For Q4FY16, net sales showed a 14% (YoY) jump up at Rs.16 crore. Keeping a tight leash on costs, its operating profit rose 50% at Rs.6 crore. It ended the quarter with a net profit at Rs.4 crore, doubling from Rs.2 crore in previous Q4.

It ended Fy16 with a net profit of Rs.6 crore v/s Rs.4 crore. Borrowings have come down from Rs.12 crore to Rs.5 crore and consequently, interest outgo for the year was at Rs.1 crore.

It equity is at Rs.9.24 crore and reserves at Rs.28 crore. EPS for the year was at Rs.1.39 (FV of Rs.2).

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