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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Royal Orchid Hotels Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:16 pm

Market Cap 1,010 Cr.
Current Price 368
High / Low449/280
Stock P/E20.8
Book Value 69.6
Dividend Yield0.54 %
ROCE19.8 %
ROE26.7 %
Face Value 10.0
PEG Ratio0.38

Competitors of Royal Orchid Hotels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sri Havisha Hospitality & Infrastructure Ltd 77.4 Cr. 2.553.78/1.60 0.980.00 %2.35 %13.0 % 2.00
Taj GVK Hotels & Resorts Ltd 2,127 Cr. 339423/21328.6 86.50.00 %18.6 %14.6 % 2.00
Speciality Restaurants Ltd 845 Cr. 176287/15331.7 64.41.45 %10.6 %9.00 % 10.0
Oriental Hotels Ltd 2,526 Cr. 141155/79.050.9 34.60.34 %10.8 %8.58 % 1.00
Kamat Hotels (India) Ltd 603 Cr. 233374/18729.7 79.40.00 %17.7 %11.7 % 10.0
Industry Average8,832.33 Cr627.6443.3989.760.23%10.86%32.18%5.90

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales33143253406058727369678276
Expenses30192736333943495151515758
Operating Profit3-551772115242218152518
OPM %9%-35%14%32%17%35%26%33%30%26%23%30%23%
Other Income-53413435445356
Interest4544444455554
Depreciation5555544555555
Profit before tax-11-11-09331612191614102014
Tax %6%-1%241%34%3%26%26%27%26%25%22%27%-7%
Net Profit-10-11163212915131181617
EPS in Rs-3.42-3.110.621.6111.594.033.225.274.623.532.495.606.06

Last Updated: June 9, 2024, 2:27 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:01 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales16116014214815917518920420581139264290
Expenses13414312112713815515816917492115182210
Operating Profit261821212120323531-11248280
OPM %16%11%15%14%13%11%17%17%15%-14%17%31%28%
Other Income27-324513915151421617
Interest16171916151616141616171619
Depreciation14161415141616141919191819
Profit before tax-2-9-44-6-3092111-46306459
Tax %-103%1%9%-17%-30%3,892%74%38%53%13%10%26%
Net Profit-5-9-40-7-4-52135-40274947
EPS in Rs-0.97-2.85-13.77-1.42-0.48-1.671.234.361.79-11.8410.7117.1516.24
Dividend Payout %0%0%-1%0%0%-60%122%46%0%0%0%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-80.00%-344.44%82.50%42.86%-25.00%140.00%550.00%-61.54%-900.00%167.50%81.48%
Change in YoY Net Profit Growth (%)0.00%-264.44%426.94%-39.64%-67.86%165.00%410.00%-611.54%-838.46%1067.50%-86.02%

Growth

Compounded Sales Growth
10 Years:5%
5 Years:7%
3 Years:9%
TTM:26%
Compounded Profit Growth
10 Years:20%
5 Years:82%
3 Years:112%
TTM:11%
Stock Price CAGR
10 Years:29%
5 Years:27%
3 Years:84%
1 Year:14%
Return on Equity
10 Years:2%
5 Years:5%
3 Years:6%
Last Year:32%

Last Updated: May 1, 2024, 8:35 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital27272727272727272727272727
Reserves21118114413513313914215014611398146156
Borrowings2882571339182112106102152163149158183
Other Liabilities1091169192100130126124124115899394
Total Liabilities636580395346342408402403449419362423460
Fixed Assets346483269248238286272264307243193206234
CWIP19516172022222121211010
Investments0000000000242727
Other Assets95811097882100108118120175145190198
Total Assets636580395346342408402403449419362423460

Reserves and Borrowings Chart

Royal Orchid Hotels Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 25491526232725412952256
Cash from Investing Activity -571165-4-7-9-1-5-16-11-3-9
Cash from Financing Activity 31-59-155-46-16-11-18-23-28-1-13-25
Net Cash Flow-0-926-23-07613-15-6621

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow26.00-239.00-112.00-70.00-61.00-92.00-74.00-67.00-121.00-174.00-125.00-76.00

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 Days283132383539453341435544
Inventory Days474342393837414033524131
Days Payable4065283135005275535735854911,102807507
Cash Conversion Cycle-331-454-239-423-454-477-487-512-417-1,006-712-432
Working Capital Days-247-120-144-109-111-98-86-96-9327-71-25
ROCE %3%1%3%3%4%5%8%11%8%-6%7%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters68.83%67.73%67.73%67.68%67.68%65.38%63.59%63.60%63.60%63.60%63.60%63.60%
FIIs5.01%4.99%4.97%4.87%3.79%4.24%4.72%4.84%4.65%4.18%4.79%6.06%
DIIs0.00%0.00%0.00%0.00%0.00%0.07%0.00%0.00%0.00%0.00%0.21%0.66%
Public26.16%27.27%27.29%27.45%28.53%30.30%31.69%31.55%31.74%32.21%31.41%29.67%
No. of Shareholders21,73222,12721,53219,80319,12620,43120,13420,11420,89321,35121,52326,649

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)17.6817.1510.71-11.842.04
Diluted EPS (Rs.)17.6817.1510.71-11.842.02
Cash EPS (Rs.)24.5123.8116.86-7.568.77
Book Value[Excl.RevalReserv]/Share (Rs.)75.8871.8453.6163.0877.90
Book Value[Incl.RevalReserv]/Share (Rs.)75.8871.8453.6163.0877.90
Revenue From Operations / Share (Rs.)107.0696.1050.5129.4874.76
PBDIT / Share (Rs.)34.7035.7414.72-1.1316.52
PBIT / Share (Rs.)27.4529.047.63-8.179.60
PBT / Share (Rs.)20.8023.1910.89-16.783.90
Net Profit / Share (Rs.)17.2717.119.77-14.591.85
NP After MI And SOA / Share (Rs.)17.6817.1510.71-11.841.79
PBDIT Margin (%)32.4137.1929.13-3.8422.10
PBIT Margin (%)25.6430.2215.09-27.7012.84
PBT Margin (%)19.4224.1321.56-56.915.21
Net Profit Margin (%)16.1317.8119.33-49.492.47
NP After MI And SOA Margin (%)16.5117.8421.19-40.162.39
Return on Networth / Equity (%)25.4227.1823.45-23.132.86
Return on Capital Employeed (%)19.7523.157.32-7.037.46
Return On Assets (%)10.3111.098.09-7.751.09
Long Term Debt / Equity (X)0.240.370.570.670.49
Total Debt / Equity (X)0.350.430.640.690.51
Asset Turnover Ratio (%)0.650.670.350.120.30
Current Ratio (X)1.311.671.281.290.78
Quick Ratio (X)1.281.641.251.270.75
Dividend Payout Ratio (NP) (%)0.000.000.000.00111.66
Dividend Payout Ratio (CP) (%)0.000.000.000.0022.95
Earning Retention Ratio (%)0.000.000.000.00-11.66
Cash Earning Retention Ratio (%)0.000.000.000.0077.05
Interest Coverage Ratio (X)5.216.112.51-0.192.90
Interest Coverage Ratio (Post Tax) (X)3.593.921.11-1.001.32
Enterprise Value (Cr.)1026.79770.23390.36257.57202.54
EV / Net Operating Revenue (X)3.502.922.823.190.98
EV / EBITDA (X)10.797.869.67-82.794.47
MarketCap / Net Operating Revenue (X)3.382.822.422.130.54
Retention Ratios (%)0.000.000.000.00-11.66
Price / BV (X)5.214.292.681.230.65
Price / Net Operating Revenue (X)3.382.822.422.130.54
EarningsYield0.040.060.08-0.180.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 388.62

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.

Undervalued: 5.60% compared to the current price 368

Intrinsic Value: 604.05

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 64.14% compared to the current price ₹368

Last 5 Year EPS CAGR: 55.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -97.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -411.58, which is a positive sign.
  3. The company has shown consistent growth in sales (178.23 cr) and profit (6.46 cr) over the years.
  1. The stock has a low average ROCE of 6.00%, which may not be favorable.
  2. The company has higher borrowings (142.08) compared to reserves (140.83), which may suggest financial risk.

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 Royal Orchid Hotels Ltd:
    1. Net Profit Margin: 16.13%
      • 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: 19.75% (Industry Average ROCE: %)
      • 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%: 25.42% (Industry Average ROE: %)
      • 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): 3.59
      • 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: 1.28
      • 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: 20.8 (Industry average Stock P/E: )
      • 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: 0.35
      • 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

Royal Orchid Hotels Ltd. is a Public Limited Listed company incorporated on 03/01/1986 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L55101KA1986PLC007392 and registration number is 007392. Currently Company is involved in the business activities of Short term accommodation activities. Company’s Total Operating Revenue is Rs. 79.74 Cr. and Equity Capital is Rs. 27.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hotels, Resorts & RestaurantsHotel Royal Orchid: No.1, Golf Avenue, Bengaluru Karnataka 560008investors@royalorchidhotels.com
http://www.royalorchidhotels.com
Management
NamePosition Held
Mr. Chander K BaljeeChairman & Managing Director
Mr. Sunil SikkaNon Executive Director
Mr. Keshav BaljeeNon Executive Director
Ms. Leena S PirgalIndependent Director
Mr. Ashutosh ChandraIndependent Director
Mr. Bhaskar PramanikIndependent Director

FAQ

What is the latest fair value of Royal Orchid Hotels Ltd?

The latest fair value of Royal Orchid Hotels Ltd is ₹388.62.

What is the Market Cap of Royal Orchid Hotels Ltd?

The Market Cap of Royal Orchid Hotels Ltd is 1,010 Cr..

What is the current Stock Price of Royal Orchid Hotels Ltd as on 23 June 2024?

The current stock price of Royal Orchid Hotels Ltd as on 23 June 2024 is ₹368.

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

In FY 2024, the High / Low of Royal Orchid Hotels Ltd stocks is 449/280.

What is the Stock P/E of Royal Orchid Hotels Ltd?

The Stock P/E of Royal Orchid Hotels Ltd is 20.8.

What is the Book Value of Royal Orchid Hotels Ltd?

The Book Value of Royal Orchid Hotels Ltd is 69.6.

What is the Dividend Yield of Royal Orchid Hotels Ltd?

The Dividend Yield of Royal Orchid Hotels Ltd is 0.54 %.

What is the ROCE of Royal Orchid Hotels Ltd?

The ROCE of Royal Orchid Hotels Ltd is 19.8 %.

What is the ROE of Royal Orchid Hotels Ltd?

The ROE of Royal Orchid Hotels Ltd is 26.7 %.

What is the Face Value of Royal Orchid Hotels Ltd?

The Face Value of Royal Orchid 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 Royal Orchid 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