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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Oriental Hotels Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:11 pm

Market Cap 3,081 Cr.
Current Price 173
High / Low193/99.0
Stock P/E72.9
Book Value 36.0
Dividend Yield0.29 %
ROCE10.7 %
ROE8.49 %
Face Value 1.00
PEG Ratio2.18

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Oriental Hotels Ltd

Competitors of Oriental Hotels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Howard Hotels Ltd 23.0 Cr. 25.333.5/15.1 10.40.00 %9.86 %8.53 % 10.0
HS India Ltd 25.5 Cr. 15.720.8/12.219.6 19.00.00 %6.90 %4.47 % 10.0
Gujarat Hotels Ltd 80.4 Cr. 212261/15117.8 1191.18 %13.9 %11.2 % 10.0
Graviss Hospitality Ltd 297 Cr. 42.164.7/35.122.4 26.50.00 %1.80 %1.40 % 2.00
Goel Food Products Ltd 44.4 Cr. 23.678.0/23.611.4 11.92.12 %18.9 %25.4 % 10.0
Industry Average9,225.22 Cr469.68113.3891.790.40%12.66%15.98%6.76

All Competitor Stocks of Oriental Hotels Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales532552766689891061119391102107
Expenses47374857546465737970717481
Operating Profit6-13520122523323222202927
OPM %11%-51%9%26%18%28%26%31%29%24%22%28%25%
Other Income1113223141254
Interest5566565555553
Depreciation9667766666666
Profit before tax-7-24-71021616232613112221
Tax %31%29%29%29%33%29%29%34%30%32%31%24%21%
Net Profit-6-22-8901081621741919
EPS in Rs-0.33-1.23-0.420.520.000.560.450.871.160.410.241.041.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales345355367311335358347291116219395393
Expenses281301306278286302295253148196282295
Operating Profit6455603349565138-322311298
OPM %19%15%16%11%15%16%15%13%-28%11%29%25%
Other Income16-153-6541047771111
Interest293132323231272422222017
Depreciation323533242528282829262324
Profit before tax18-26-2-28-32100-6-76-188068
Tax %-5%6%125%29%-15%136%13%-3%29%29%31%26%
Net Profit17-241-125692-8-71-205450
EPS in Rs0.87-1.270.09-0.690.280.345.13-0.46-3.99-1.133.042.78
Dividend Payout %63%-43%436%-29%0%0%10%-43%0%0%16%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-241.18%104.17%-1300.00%141.67%20.00%1433.33%-108.70%-787.50%71.83%370.00%-7.41%
Change in YoY Net Profit Growth (%)0.00%345.34%-1404.17%1441.67%-121.67%1413.33%-1542.03%-678.80%859.33%298.17%-377.41%

Oriental Hotels Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:1%
5 Years:3%
3 Years:50%
TTM:-1%
Compounded Profit Growth
10 Years:25%
5 Years:25%
3 Years:39%
TTM:-12%
Stock Price CAGR
10 Years:22%
5 Years:38%
3 Years:65%
1 Year:63%
Return on Equity
10 Years:1%
5 Years:0%
3 Years:5%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 3:10 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital18181818181818181818181818
Reserves389365329402394424516513433422521601625
Borrowings313347348317322313243228253280215202212
Other Liabilities108105141827572756967667470102
Total Liabilities828835836819809827852828771786828890957
Fixed Assets514533537407391376395396372355380388480
CWIP19175441722504546
Investments9196100238235259289272248252296334359
Other Assets203190194170179175167158146179148114112
Total Assets828835836819809827852828771786828890957

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +7657642842523845-212910491
Cash from Investing Activity +-22-44-26-7-4-198239-1-32-10-57
Cash from Financing Activity +-64-15-43-18-32-40-98-65-04-105-40
Net Cash Flow-10-2-537-72218-231-10-7

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-249.00-292.00-288.00-284.00-273.00-257.00-192.00-190.00-285.00-257.00-103.00-104.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days232321181516141528241713
Inventory Days867692787476711031971258690
Days Payable262274293341317326376441756460315274
Cash Conversion Cycle-153-175-180-245-227-234-291-324-532-311-212-171
Working Capital Days-92-168-42-32-21-13-276-35-62-32-12-17
ROCE %5%3%4%1%4%4%4%2%-7%1%13%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters67.59%67.59%67.56%67.56%67.56%67.56%67.56%67.56%67.56%67.56%67.56%67.56%
FIIs0.00%0.03%0.05%0.09%0.65%0.38%0.46%0.45%0.40%0.69%0.58%0.73%
DIIs10.36%10.12%7.37%6.87%0.55%0.69%0.71%0.78%0.78%1.92%2.68%2.68%
Public22.06%22.26%25.03%25.48%31.24%31.37%31.27%31.21%31.25%29.82%29.17%29.04%
No. of Shareholders32,77740,88944,69645,50851,73453,13950,41851,16056,94965,91582,58078,661

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Value Fund1,346,6961.5613.851,346,6962024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)2.783.04-1.13-3.99-0.46
Diluted EPS (Rs.)2.783.04-1.13-3.99-0.46
Cash EPS (Rs.)4.154.380.75-1.391.18
Book Value[Excl.RevalReserv]/Share (Rs.)34.6330.1824.6325.2329.72
Book Value[Incl.RevalReserv]/Share (Rs.)34.6330.1824.6325.2329.72
Revenue From Operations / Share (Rs.)22.0122.0912.286.4916.30
PBDIT / Share (Rs.)6.106.891.71-1.392.58
PBIT / Share (Rs.)4.765.620.23-3.001.03
PBT / Share (Rs.)3.804.50-1.01-4.23-0.35
Net Profit / Share (Rs.)2.803.11-0.71-3.00-0.36
NP After MI And SOA / Share (Rs.)2.783.04-1.13-3.99-0.46
PBDIT Margin (%)27.7231.1913.88-21.3915.83
PBIT Margin (%)21.6025.451.91-46.196.31
PBT Margin (%)17.2420.35-8.20-65.18-2.20
Net Profit Margin (%)12.7314.06-5.85-46.23-2.26
NP After MI And SOA Margin (%)12.6213.75-9.23-61.50-2.83
Return on Networth / Equity (%)8.0210.06-4.60-15.81-1.55
Return on Capital Employeed (%)11.1613.710.60-7.772.48
Return On Assets (%)5.576.55-2.57-9.24-0.99
Long Term Debt / Equity (X)0.160.280.530.480.35
Total Debt / Equity (X)0.270.330.600.480.38
Asset Turnover Ratio (%)0.450.560.310.160.39
Current Ratio (X)0.500.981.190.971.20
Quick Ratio (X)0.420.881.110.871.10
Dividend Payout Ratio (NP) (%)17.980.000.000.00-108.12
Dividend Payout Ratio (CP) (%)12.110.000.000.0045.92
Earning Retention Ratio (%)82.020.000.000.00208.12
Cash Earning Retention Ratio (%)87.890.000.000.0054.08
Interest Coverage Ratio (X)6.356.121.37-1.131.92
Interest Coverage Ratio (Post Tax) (X)3.923.760.42-1.430.75
Enterprise Value (Cr.)2215.101550.411329.40587.59469.91
EV / Net Operating Revenue (X)5.633.936.065.071.61
EV / EBITDA (X)20.3212.6043.64-23.7110.19
MarketCap / Net Operating Revenue (X)5.263.575.163.511.12
Retention Ratios (%)82.010.000.000.00208.12
Price / BV (X)3.352.612.570.900.61
Price / Net Operating Revenue (X)5.263.575.163.511.12
EarningsYield0.020.03-0.01-0.17-0.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Oriental Hotels Ltd as of November 18, 2024 is: 223.46

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.

As of November 18, 2024, Oriental Hotels Ltd is Undervalued by 29.17% compared to the current share price 173.00

Intrinsic Value of Oriental Hotels Ltd as of November 18, 2024 is: 298.31

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • 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.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, Oriental Hotels Ltd is Undervalued by 72.43% compared to the current share price 173.00

Last 5 Year EPS CAGR: 33.50%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -66.83, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -254.58, which is a positive sign.
  3. The company has higher reserves (456.46 cr) compared to borrowings (276.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (319.33 cr) and profit (9.08 cr) over the years.
  1. The stock has a low average ROCE of 3.75%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Oriental Hotels Ltd:
    1. Net Profit Margin: 12.73%
      • 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: 11.16% (Industry Average ROCE: 12.66%)
      • 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%: 8.02% (Industry Average ROE: 15.98%)
      • 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): 3.92
      • 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: 0.42
      • 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: 72.9 (Industry average Stock P/E: 113.38)
      • 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: 0.27
      • 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.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Oriental Hotels Ltd. is a Public Limited Listed company incorporated on 18/09/1970 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L55101TN1970PLC005897 and registration number is 005897. Currently Company is involved in the business activities of Restaurants and mobile food service activities. Company’s Total Operating Revenue is Rs. 218.70 Cr. and Equity Capital is Rs. 17.86 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hotels, Resorts & RestaurantsTaj Coromandel, Chennai (Madras) Tamil Nadu 600034ohlshares.mad@tajhotels.com
http://www.orientalhotels.co.in
Management
NamePosition Held
Mr. Puneet ChhatwalChairman
Mr. Pramod RanjanManaging Director & CEO
Mr. D Vijayagopal ReddyNon Exe.Non Ind.Director
Mr. Ramesh D HarianiNon Exe.Non Ind.Director
Mr. Giridhar SanjeeviNon Exe.Non Ind.Director
Mr. Harish LakshmanInd. Non-Executive Director
Ms. Nina ChatrathInd. Non-Executive Director
Ms. Gita NayyarInd. Non-Executive Director
Mr. Vijay SankarInd. Non-Executive Director
Mr. Moiz Mohsin MiyajiwalaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Oriental Hotels Ltd?

The latest intrinsic value of Oriental Hotels Ltd as on 18 November 2024 is ₹223.46, which is 29.17% higher than the current market price of ₹173.00.

What is the Market Cap of Oriental Hotels Ltd?

The Market Cap of Oriental Hotels Ltd is 3,081 Cr..

What is the current Stock Price of Oriental Hotels Ltd as on 18 November 2024?

The current stock price of Oriental Hotels Ltd as on 18 November 2024 is ₹173.

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

In FY 2024, the High / Low of Oriental Hotels Ltd stocks is 193/99.0.

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

The Stock P/E of Oriental Hotels Ltd is 72.9.

What is the Book Value of Oriental Hotels Ltd?

The Book Value of Oriental Hotels Ltd is 36.0.

What is the Dividend Yield of Oriental Hotels Ltd?

The Dividend Yield of Oriental Hotels Ltd is 0.29 %.

What is the ROCE of Oriental Hotels Ltd?

The ROCE of Oriental Hotels Ltd is 10.7 %.

What is the ROE of Oriental Hotels Ltd?

The ROE of Oriental Hotels Ltd is 8.49 %.

What is the Face Value of Oriental Hotels Ltd?

The Face Value of Oriental Hotels Ltd is 1.00.

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 Oriental 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