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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 509438 | NSE: BENARAS

Fundamental Analysis of Benares Hotels Ltd

Basic Stock Data

Last Updated: April 23, 2024, 1:25 pm

Market Cap 1,198 Cr.
Current Price 9,218
High / Low10,051/3,571
Stock P/E33.2
Book Value 1,023
Dividend Yield0.22 %
ROCE40.4 %
ROE31.0 %
Face Value 10.0

Data Source: screener.in

Competitors of Benares Hotels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
TGB Banquets & Hotels Ltd 44.8 Cr. 15.320.5/8.3529.5 26.60.00 %3.48 %1.77 % 10.0
Speciality Restaurants Ltd 952 Cr. 198287/16813.3 59.91.27 %17.2 %37.2 % 10.0
Royal Orchid Hotels Ltd 1,087 Cr. 396449/28024.4 66.90.50 %24.5 %31.6 % 10.0
The Byke Hospitality Ltd 269 Cr. 67.277.2/34.948.8 40.40.00 %4.63 %1.45 % 10.0
Mahindra Holidays & Resorts India Ltd 7,961 Cr. 394470/28090.1 20.80.00 %10.2 %35.9 % 10.0
Industry Average2,062.76 Cr214.1041.2242.920.35%12.00%21.58%10.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1011411191620182828252634
Expenses7858121012131616161618
Operating Profit33-128685121191016
OPM %28%31%-31%23%39%36%38%29%44%41%37%39%47%
Other Income0000000000111
Interest0000000000000
Depreciation2222222211111
Profit before tax11-31646411108915
Tax %27%24%25%26%25%27%25%26%25%25%26%25%25%
Net Profit11-204353886711
EPS in Rs4.157.85-17.543.6933.9223.3134.9222.8563.7758.3848.4652.6286.92

Last Updated: April 10, 2024, 6:21 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:51 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales353943475050476064245093112
Expenses24252831353636424324355766
Operating Profit1114151615141117210153646
OPM %31%35%34%34%30%28%24%29%33%2%29%39%41%
Other Income01111211-01013
Interest-0-0-0-0-0-00111100
Depreciation2223354567666
Profit before tax10131414131181214-783143
Tax %36%32%35%35%36%37%17%28%21%25%27%25%
Net Profit6999876911-562332
EPS in Rs47.6266.0069.0871.0065.2352.4649.8567.0881.62-40.2343.46179.85246.38
Dividend Payout %34%30%29%28%31%29%30%22%9%-0%23%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%0.00%0.00%-11.11%-12.50%-14.29%50.00%22.22%-145.45%220.00%283.33%
Change in YoY Net Profit Growth (%)0.00%-50.00%0.00%-11.11%-1.39%-1.79%64.29%-27.78%-167.68%365.45%63.33%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:15%
3 Years:14%
TTM:37%
Compounded Profit Growth
10 Years:11%
5 Years:30%
3 Years:29%
TTM:70%
Stock Price CAGR
10 Years:30%
5 Years:41%
3 Years:90%
1 Year:127%
Return on Equity
10 Years:13%
5 Years:11%
3 Years:10%
Last Year:26%

Last Updated: April 17, 2024, 12:52 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1111111111111
Reserves303642485660647077717798109
Borrowings0000005599444
Other Liabilities9121214141819201810141719
Total Liabilities41505563717989971059195120133
Fixed Assets26252644434154819184787371
CWIP461113415100012
Investments0000000000000
Other Assets1118191925342014147174760
Total Assets41505563717989971059195120133

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 1210131011916172162841
Cash from Investing Activity -2-17-7-6-12-8-16-13-1-11-17-25
Cash from Financing Activity -2-3-3-3-33-3-3-2-6-2-3
Net Cash Flow7-1040-43-41-1-0912

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow11.0014.0015.0016.0015.0014.006.0012.0012.00-9.0011.0032.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days272221192731312725121017
Inventory Days1078380858585927962109
Days Payable231408237299285367446429333235
Cash Conversion Cycle-97-303-136-195-173-251-323-323-246-1141017
Working Capital Days-22-445392955-38-34-17-29-28-9
ROCE %32%37%34%31%25%18%12%17%18%-7%10%34%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.57%62.57%62.57%62.57%62.57%62.57%62.57%62.57%62.57%62.57%62.57%62.57%
Public37.43%37.43%37.43%37.43%37.43%37.43%37.44%37.43%37.42%37.43%37.42%37.43%
No. of Shareholders4,5114,4074,3514,3734,3344,4134,3894,3174,4174,6184,9975,601

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)179.8543.48-40.2281.6367.10
Diluted EPS (Rs.)179.8543.48-40.2281.6367.10
Cash EPS (Rs.)226.0792.4313.12130.72107.32
Book Value[Excl.RevalReserv]/Share (Rs.)767.50598.75555.65602.41551.56
Book Value[Incl.RevalReserv]/Share (Rs.)767.50598.75555.65602.41551.56
Dividend / Share (Rs.)20.0010.000.007.5015.00
Revenue From Operations / Share (Rs.)717.88383.38186.45489.50459.05
PBDIT / Share (Rs.)289.68113.237.41161.19139.72
PBIT / Share (Rs.)243.4664.28-45.93112.1099.50
PBT / Share (Rs.)240.6359.29-53.60103.8293.67
Net Profit / Share (Rs.)179.8543.48-40.2281.6367.10
PBDIT Margin (%)40.3529.533.9732.9230.43
PBIT Margin (%)33.9116.76-24.6322.9021.67
PBT Margin (%)33.5115.46-28.7421.2020.40
Net Profit Margin (%)25.0511.34-21.5716.6714.61
Return on Networth / Equity (%)23.437.26-7.2313.5512.16
Return on Capital Employeed (%)28.929.54-7.4616.5916.46
Return On Assets (%)19.435.94-5.7510.129.03
Long Term Debt / Equity (X)0.000.000.000.040.00
Total Debt / Equity (X)0.000.000.070.110.06
Asset Turnover Ratio (%)0.860.530.240.630.64
Current Ratio (X)3.561.360.470.640.57
Quick Ratio (X)3.441.250.390.580.50
Dividend Payout Ratio (NP) (%)5.560.00-18.6418.3722.35
Dividend Payout Ratio (CP) (%)4.420.0057.1511.4713.97
Earning Retention Ratio (%)94.440.00118.6481.6377.65
Cash Earning Retention Ratio (%)95.580.0042.8588.5386.03
Interest Coverage Ratio (X)102.4222.710.9619.4723.96
Interest Coverage Ratio (Post Tax) (X)64.599.72-4.2410.8612.51
Enterprise Value (Cr.)392.03258.61170.14174.77205.66
EV / Net Operating Revenue (X)4.205.197.022.753.45
EV / EBITDA (X)10.4117.57176.688.3411.32
MarketCap / Net Operating Revenue (X)4.525.326.862.643.41
Retention Ratios (%)94.430.00118.6481.6277.64
Price / BV (X)4.233.412.302.152.84
Price / Net Operating Revenue (X)4.525.326.862.643.41
EarningsYield0.050.02-0.030.060.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 10551.88

The stock is undervalued by 14.47% compared to the current price ₹9218

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.75%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -6.25, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -177.83, which is a positive sign.
  4. The company has higher reserves (69.25 cr) compared to borrowings (3.33 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (54.92 cr) and profit (14.15 cr) over the years.

    Stock Analysis

    • Based on the analysis of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Benares Hotels Ltd:
      1. Net Profit Margin: 25.05% (Higher values are generally favorable)
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 28.92% (Industry Average ROCE: 12%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 23.43% (Industry Average ROE: 21.58%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 64.59 (Higher values, preferably > 2, are recommended)
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 3.44 (Higher values, preferably > 1, are recommended)
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 33.2 (Industry average Stock P/E: 41.22)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.
      Stock Rating: ★★★★★

    About the Company

    Benares Hotels Ltd. is a Public Limited Listed company incorporated on 03/11/1971 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L55101UP1971PLC003480 and registration number is 003480. Currently Company is involved in the business activities of Hotels and motels, inns, resorts providing short term lodging facilities; includes accommodation in house boats. Company’s Total Operating Revenue is Rs. 49.84 Cr. and Equity Capital is Rs. 1.30 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Hotels, Resorts & RestaurantsNadesar Palace Compound, Varanasi Uttar Pradesh 221002investor@tajhotels.com
    http://www.benareshotelslimited.com
    Management
    NamePosition Held
    Dr. Anant Narain SinghChairman
    Mr. Rohit KhoslaNon Exe.Non Ind.Director
    Mr. Beejal DesaiNon Exe.Non Ind.Director
    Mrs. Rukmani DeviInd. Non-Executive Director
    Mr. Moiz MiyajiwalaInd. Non-Executive Director
    Mr. Puneet RamanInd. Non-Executive Director

    Benares Hotels Ltd. Share Price Update

    Share PriceValue
    Today₹9,215.00
    Previous Day₹9,252.40

    FAQ

    What is the latest fair value of Benares Hotels Ltd?

    The latest fair value of Benares Hotels Ltd is ₹10551.88.

    What is the Market Cap of Benares Hotels Ltd?

    The Market Cap of Benares Hotels Ltd is 1,198 Cr..

    What is the current Stock Price of Benares Hotels Ltd as on 23 April 2024?

    The current stock price of Benares Hotels Ltd as on 23 April 2024 is 9,218.

    What is the High / Low of Benares Hotels Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Benares Hotels Ltd stocks is ₹10,051/3,571.

    What is the Stock P/E of Benares Hotels Ltd?

    The Stock P/E of Benares Hotels Ltd is 33.2.

    What is the Book Value of Benares Hotels Ltd?

    The Book Value of Benares Hotels Ltd is 1,023.

    What is the Dividend Yield of Benares Hotels Ltd?

    The Dividend Yield of Benares Hotels Ltd is 0.22 %.

    What is the ROCE of Benares Hotels Ltd?

    The ROCE of Benares Hotels Ltd is 40.4 %.

    What is the ROE of Benares Hotels Ltd?

    The ROE of Benares Hotels Ltd is 31.0 %.

    What is the Face Value of Benares Hotels Ltd?

    The Face Value of Benares Hotels Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Benares Hotels Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE