Advani Hotels and Resorts (India) Limited- A growth story in the making

Advani Hotels and Resorts (India), the owners and operators of the 201-key 5-Star Deluxe ‘Caravela Beach Resort Goa’, has been exhibiting excellent growth momentum in the recent past. The company’s share has surged by 49% since March 23, backed by robust sales & profitability growth along with higher Total revenue per occupied room (TREVPOR).

In FY23, the company achieved its highest topline of Rs. 100 crore, with an EBITDA margin of 40.9%. It also reported an impressive occupancy rate of 82.5%, surpassing that of most other hotel companies. The company also reported a substantial return on assets, standing at 34.7%, which marked a significant increase from the 9.5% reported in the previous year.

The company is essentially debt-free and has consistently rewarded its shareholders through dividend distributions. Since 2019, the company has maintained a dividend payout ratio of over 55%, with the exception of the COVID-19-affected year. Notably, the company has been recognized as one of the ‘TOP 10 – BEST DIVIDEND PAYING STOCKS FOR THE LONG TERM IN INDIA 2023′ in an article published by Wikifinancepedia.com.

In addition, it’s worth noting that the company has consistently maintained a strong cash flow from operations over the past decade. The Caravela Beach Resort Goa also possesses an additional Floor Space Index (FSI) of 130,000 sq. ft., providing the opportunity for future expansion plans.

From a qualitative standpoint, The Caravela Beach Resort Goa has once again achieved the prestigious “Travellers’ Choice 2023 Award” from Tripadvisor, securing its place among the top 10% of hotels worldwide.

Shares of Advani Hotels & Resorts (India) Limited have gained about 20% in the last one month. Ace investor Radhakishan Damani owns a 4.18% stake in the company.

Today, the stock opened at Rs 106.23, with a high and low of Rs 107.60 and Rs 103.85, respectively. The stock is currently trading at Rs 104.78, down by 1.38%. The stock has a 52-week high of Rs 110.90 and a 52-week low of Rs 66.75. The company has a ROCE of 66.4% and an ROE of 50.6% with a market capitalisation of Rs 485 crore.

The stock has shown strong growth and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.