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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Royal Orchid Hotels Ltd

About the Company - Royal Orchid Hotels Ltd

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

Royal Orchid Hotels Ltd. Share Price Update

Share PriceValue
Today₹404.95
Previous Day₹416.65

Basic Stock Data of Royal Orchid Hotels Ltd

Market Cap 1,144 Cr.
Current Price 417
High / Low449/219
Stock P/E25.7
Book Value 66.9
Dividend Yield0.45 %
ROCE24.5 %
ROE31.6 %
Face Value 10.0

Data Source: screener.in

Competitors of Royal Orchid Hotels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Speciality Restaurants Ltd 1,154 Cr. 240287/16816.1 59.91.04 %17.2 %37.2 % 10.0
Taj GVK Hotels & Resorts Ltd 2,456 Cr. 392414/17439.0 78.50.00 %21.8 %18.4 % 2.00
Sri Havisha Hospitality & Infrastructure Ltd 81.0 Cr. 2.673.78/1.60 1.080.00 %6.36 %4.52 % 2.00
Indian Hotels Co Ltd 82,587 Cr. 580582/30070.6 58.20.18 %12.6 %12.7 % 1.00
Viceroy Hotels Ltd 15.3 Cr. 3.603.67/1.75 1040.00 %7.64 %% 10.0
Industry Average36.26 Cr243.6525.1460.340.24%13.12%14.56%5

Royal Orchid Hotels Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales30331432534060587273696782
Expenses27301927363339434951515157
Operating Profit33-5517721152422181525
OPM %8%9%-35%14%32%17%35%26%33%30%26%23%30%
Other Income1-5341343544535
Interest4454444445555
Depreciation5555554455555
Profit before tax-5-11-11-093316121916141020
Tax %12%6%-1%241%34%3%26%26%27%26%25%22%27%
Net Profit-4-10-111632129151311816
EPS in Rs-1.03-3.42-3.110.621.6111.594.033.225.274.623.532.495.60

Royal Orchid Hotels Ltd Quarterly Chart

Royal Orchid Hotels Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales16116014214815917518920420581139264281
Expenses13414312112713815515816917492115182201
Operating Profit261821212120323531-11248279
OPM %16%11%15%14%13%11%17%17%15%-14%17%31%28%
Other Income27-324513915151421616
Interest16171916151616141616171618
Depreciation14161415141616141919191819
Profit before tax-2-9-44-6-3092111-46306458
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-0.97-2.85-13.77-1.42-0.48-1.671.234.361.79-11.8410.7117.1515.91
Dividend Payout %0%0%-1%0%0%-60%122%46%0%0%0%12%

Royal Orchid Hotels Ltd Profit & Loss Yearly Chart

Royal Orchid Hotels Ltd 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:31%
5 Years:34%
3 Years:86%
1 Year:83%
Return on Equity
10 Years:2%
5 Years:5%
3 Years:6%
Last Year:32%

Royal Orchid Hotels Ltd 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

Royal Orchid Hotels Ltd 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

Royal Orchid Hotels Ltd 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%

Royal Orchid Hotels Ltd Financial Efficiency Indicators Chart

Royal Orchid Hotels Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters69.42%68.83%67.73%67.73%67.68%67.68%65.38%63.59%63.60%63.60%63.60%63.60%
FIIs4.99%5.01%4.99%4.97%4.87%3.79%4.24%4.72%4.84%4.65%4.18%4.79%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.00%0.00%0.00%0.00%0.21%
Public25.59%26.16%27.27%27.29%27.45%28.53%30.30%31.69%31.55%31.74%32.21%31.41%
No. of Shareholders22,35721,73222,12721,53219,80319,12620,43120,13420,11420,89321,35121,523

Royal Orchid Hotels Ltd Shareholding Pattern Chart

No. of Royal Orchid Hotels Ltd Shareholders

This stock is not held by any mutual fund

Royal Orchid Hotels Ltd ROCE Trend

Royal Orchid Hotels Ltd EPS Trend

Royal Orchid Hotels Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)17.1510.71-11.842.044.83
Diluted EPS (Rs.)17.1510.71-11.842.024.79
Cash EPS (Rs.)23.8116.86-7.568.7710.01
Book Value[Excl.RevalReserv]/Share (Rs.)71.8453.6163.0877.9080.87
Book Value[Incl.RevalReserv]/Share (Rs.)71.8453.6163.0877.9080.87
Revenue From Operations / Share (Rs.)96.1050.5129.4874.7674.37
PBDIT / Share (Rs.)35.7414.72-1.1316.5217.81
PBIT / Share (Rs.)29.047.63-8.179.6012.59
PBT / Share (Rs.)23.1910.89-16.783.907.77
Net Profit / Share (Rs.)17.119.77-14.591.854.78
NP After MI And SOA / Share (Rs.)17.1510.71-11.841.794.36
PBDIT Margin (%)37.1929.13-3.8422.1023.94
PBIT Margin (%)30.2215.09-27.7012.8416.92
PBT Margin (%)24.1321.56-56.915.2110.44
Net Profit Margin (%)17.8119.33-49.492.476.43
NP After MI And SOA Margin (%)17.8421.19-40.162.395.85
Return on Networth / Equity (%)27.1823.45-23.132.866.72
Return on Capital Employeed (%)23.157.32-7.037.4610.91
Return On Assets (%)11.098.09-7.751.092.95
Long Term Debt / Equity (X)0.370.570.670.490.49
Total Debt / Equity (X)0.430.640.690.510.51
Asset Turnover Ratio (%)0.670.350.120.300.32
Current Ratio (X)1.671.281.290.780.83
Quick Ratio (X)1.641.251.270.750.80
Dividend Payout Ratio (NP) (%)0.000.000.00111.6634.40
Dividend Payout Ratio (CP) (%)0.000.000.0022.9515.64
Earning Retention Ratio (%)0.000.000.00-11.6665.60
Cash Earning Retention Ratio (%)0.000.000.0077.0584.36
Interest Coverage Ratio (X)6.112.51-0.192.903.70
Interest Coverage Ratio (Post Tax) (X)3.921.11-1.001.321.99
Enterprise Value (Cr.)770.23390.36257.57202.54417.67
EV / Net Operating Revenue (X)2.922.823.190.982.05
EV / EBITDA (X)7.869.67-82.794.478.56
MarketCap / Net Operating Revenue (X)2.822.422.130.541.59
Retention Ratios (%)0.000.000.00-11.6665.59
Price / BV (X)4.292.681.230.651.82
Price / Net Operating Revenue (X)2.822.422.130.541.59
EarningsYield0.060.08-0.180.040.03

Royal Orchid Hotels Ltd Profitability Ratios (%)

Royal Orchid Hotels Ltd Liquidity Ratios

Royal Orchid Hotels Ltd Liquidity Ratios (%)

Royal Orchid Hotels Ltd Interest Coverage Ratios (X)

Royal Orchid Hotels Ltd Valuation Ratios

Fair Value / Intrinsic Value of Royal Orchid Hotels Ltd

Fair Value: ₹545.75

The stock is undervalued by 30.88% compared to the current price ₹417

*Investments are subject to market risks

Strength and Weakness of Royal Orchid Hotels Ltd

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 (177.54 cr) and profit (6.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 10.14 and average Dividend Yield of 9.47%.
  2. The stock has a low average ROCE of 6.00%, which may not be favorable.
  3. The company has higher borrowings (152.00) compared to reserves (145.69), which may suggest financial risk.

Should I Buy Royal Orchid Hotels Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Royal Orchid Hotels Ltd:
    1. Net Profit Margin: 17.81% (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: 23.15% (Industry Average ROCE: 10.63%)
      • 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. Interest Coverage Ratio (Post Tax): 3.92 (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.
    4. Quick Ratio: 1.64 (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.
    5. ✓ Stock P/E: 26.0 (Industry average Stock P/E: 32.94)
      • 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.
    6. ✓ Total Debt / Equity: 0.43 (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.

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