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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Taj GVK Hotels & Resorts Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:23 pm

Market Cap 2,108 Cr.
Current Price 336
High / Low423/217
Stock P/E25.6
Book Value 90.2
Dividend Yield0.45 %
ROCE18.8 %
ROE14.8 %
Face Value 2.00
PEG Ratio1.00

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

View Share Price Target for Taj GVK Hotels & Resorts Ltd

Competitors of Taj GVK Hotels & Resorts Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Howard Hotels Ltd 22.8 Cr. 25.033.5/15.2 10.40.00 %9.86 %8.53 % 10.0
HS India Ltd 25.5 Cr. 15.720.8/12.519.6 19.00.00 %6.90 %4.47 % 10.0
Gujarat Hotels Ltd 85.1 Cr. 225261/15118.8 1191.11 %13.9 %11.2 % 10.0
Graviss Hospitality Ltd 308 Cr. 43.664.7/35.123.2 26.50.00 %1.80 %1.40 % 2.00
Goel Food Products Ltd 42.1 Cr. 22.378.0/21.310.8 11.92.24 %18.9 %25.4 % 10.0
Industry Average9,503.48 Cr473.94112.5891.790.40%12.66%15.98%6.76

All Competitor Stocks of Taj GVK Hotels & Resorts Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales255682648689105104928911111693
Expenses28425351565872786568717566
Operating Profit-4142913303133252622404127
OPM %-15%24%35%20%35%35%31%24%29%24%36%35%29%
Other Income00011250301112
Interest5545444433332
Depreciation4444444444333
Profit before tax-125205234826211916353523
Tax %-27%29%39%49%30%34%33%30%32%30%30%26%44%
Net Profit-94123163217141311242613
EPS in Rs-1.430.591.990.432.555.122.762.302.111.783.864.122.03

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
Sales25324424827026428831731394227384408
Expenses19219219920720621724823896175265278
Operating Profit6151496358726974-252119130
OPM %24%21%20%23%22%25%22%24%-2%23%31%32%
Other Income-0522837131292
Interest222328312925222320191513
Depreciation252525181817171717161514
Profit before tax149-21519323836-3619118105
Tax %35%43%8%46%44%34%36%34%-27%47%32%29%
Net Profit95-2810212424-26108074
EPS in Rs1.400.79-0.311.311.663.353.883.80-4.221.5812.7311.87
Dividend Payout %36%25%0%31%24%18%15%0%0%0%8%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-44.44%-140.00%500.00%25.00%110.00%14.29%0.00%-208.33%138.46%700.00%-7.50%
Change in YoY Net Profit Growth (%)0.00%-95.56%640.00%-475.00%85.00%-95.71%-14.29%-208.33%346.79%561.54%-707.50%

Taj GVK Hotels & Resorts 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:5%
5 Years:5%
3 Years:63%
TTM:9%
Compounded Profit Growth
10 Years:36%
5 Years:25%
3 Years:69%
TTM:47%
Stock Price CAGR
10 Years:14%
5 Years:16%
3 Years:34%
1 Year:51%
Return on Equity
10 Years:6%
5 Years:8%
3 Years:12%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital13131313131313131313131313
Reserves332336334343350368388399372382462530553
Borrowings22823228627025522719720922521414110891
Other Liabilities818695106121140122122113123155162175
Total Liabilities654667727731738748719743723731770812831
Fixed Assets448430408454440427416436423409455442436
CWIP42577570778192918786437995
Investments4551110110110110110110110110110110110
Other Assets11912913496111130101106102127162181190
Total Assets654667727731738748719743723731770812831

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3461546261755975553100124
Cash from Investing Activity +-39-37-78-17-11-8-16-3-01-17-37
Cash from Financing Activity +5-2424-45-47-55-56-66-2-31-79-52
Net Cash Flow00-10211-136323435

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-167.00-181.00-237.00-207.00-197.00-155.00-128.00-135.00-227.00-162.00-22.0022.00

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 Days111419181624211837152217
Inventory Days119120931069979902281077772
Days Payable2603363835657214534901,580784703739
Cash Conversion Cycle-131-202-27218-443-597-353-382-1,316-662-605-650
Working Capital Days-35-47-28-43-66-79-60-48-95-42-4-18
ROCE %7%5%4%7%7%9%10%10%-3%6%22%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.98%74.98%
FIIs0.00%0.05%0.45%0.40%0.25%0.40%0.52%0.33%0.93%0.94%0.80%0.70%
DIIs2.01%0.84%1.83%2.12%3.24%3.58%4.42%4.22%4.27%3.60%3.46%2.96%
Public23.01%24.12%22.73%22.49%21.53%21.03%20.08%20.44%19.80%20.47%20.75%21.34%
No. of Shareholders57,64658,53564,03861,40562,65761,49059,90360,80661,20166,23567,31477,579

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ITI Small Cap Fund833,0510.9619.06246,0932024-11-20238.51%
Quant Small Cap Fund828,6940.1518.96246,0932024-11-20236.74%
ITI Multi Cap Fund246,0930.725.63246,0932024-11-200%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series III65,7971.781.51246,0932024-11-20-73.26%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series V33,4312.280.76246,0932024-11-20-86.42%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series VI32,1521.770.74246,0932024-11-20-86.94%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series IV31,2561.740.72246,0932024-11-20-87.3%
Sundaram Long Term Tax Advantage Fund - Series III16,20710.37246,0932024-11-20-93.41%
Sundaram Long Term Tax Advantage Fund - Series IV10,1350.940.23246,0932024-11-20-95.88%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)14.7814.830.30-6.323.72
Diluted EPS (Rs.)14.7814.830.30-6.323.72
Cash EPS (Rs.)14.0915.064.06-1.586.48
Book Value[Excl.RevalReserv]/Share (Rs.)87.3673.5758.7458.5464.86
Book Value[Incl.RevalReserv]/Share (Rs.)87.3673.5758.7458.5464.86
Revenue From Operations / Share (Rs.)65.0761.1836.2215.0249.86
PBDIT / Share (Rs.)21.0423.568.430.0712.02
PBIT / Share (Rs.)18.8221.235.95-2.579.34
PBT / Share (Rs.)16.7518.772.99-5.745.73
Net Profit / Share (Rs.)11.8712.731.58-4.223.80
NP After MI And SOA / Share (Rs.)14.7914.880.33-6.374.48
PBDIT Margin (%)32.3438.5123.270.4924.10
PBIT Margin (%)28.9234.7016.43-17.0818.73
PBT Margin (%)25.7430.688.24-38.2211.49
Net Profit Margin (%)18.2320.804.36-28.087.63
NP After MI And SOA Margin (%)22.7224.320.92-42.438.98
Return on Networth / Equity (%)16.9220.220.57-10.886.90
Return on Capital Employeed (%)17.3521.016.38-2.678.94
Return On Assets (%)11.3312.310.29-5.673.80
Long Term Debt / Equity (X)0.050.140.320.370.34
Total Debt / Equity (X)0.110.200.460.380.34
Asset Turnover Ratio (%)0.510.520.310.120.43
Current Ratio (X)1.091.000.590.440.58
Quick Ratio (X)1.040.930.530.370.49
Dividend Payout Ratio (NP) (%)6.760.000.000.000.00
Dividend Payout Ratio (CP) (%)5.870.000.000.000.00
Earning Retention Ratio (%)93.240.000.000.000.00
Cash Earning Retention Ratio (%)94.130.000.000.000.00
Interest Coverage Ratio (X)10.209.582.840.023.33
Interest Coverage Ratio (Post Tax) (X)6.756.171.53-0.322.05
Enterprise Value (Cr.)2397.121234.951091.35813.47776.34
EV / Net Operating Revenue (X)5.883.224.818.642.48
EV / EBITDA (X)18.178.3620.651733.0010.30
MarketCap / Net Operating Revenue (X)5.903.074.217.272.06
Retention Ratios (%)93.230.000.000.000.00
Price / BV (X)4.392.552.591.871.58
Price / Net Operating Revenue (X)5.903.074.217.272.06
EarningsYield0.030.070.00-0.050.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Taj GVK Hotels & Resorts Ltd as of November 21, 2024 is: 343.29

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 21, 2024, Taj GVK Hotels & Resorts Ltd is Undervalued by 2.17% compared to the current share price 336.00

Intrinsic Value of Taj GVK Hotels & Resorts Ltd as of November 21, 2024 is: 431.12

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 21, 2024, Taj GVK Hotels & Resorts Ltd is Undervalued by 28.31% compared to the current share price 336.00

Last 5 Year EPS CAGR: 25.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -47.08, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -356.67, which is a positive sign.
  3. The company has higher reserves (396.08 cr) compared to borrowings (206.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (275.83 cr) and profit (30.58 cr) over the years.
  1. The stock has a low average ROCE of 8.58%, 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 Taj GVK Hotels & Resorts Ltd:
    1. Net Profit Margin: 18.23%
      • 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: 17.35% (Industry Average ROCE: 12.28%)
      • 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%: 16.92% (Industry Average ROE: 14.04%)
      • 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): 6.75
      • 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: 1.04
      • 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: 25.6 (Industry average Stock P/E: 78.46)
      • 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: 0.11
      • 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

Taj GVK Hotels & Resorts Ltd. is a Public Limited Listed company incorporated on 02/02/1995 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L40109TG1995PLC019349 and registration number is 019349. 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. 227.08 Cr. and Equity Capital is Rs. 12.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hotels, Resorts & RestaurantsTaj Krishna, Road No. 1, Hyderabad Telangana 500034tajgvkshares.hyd@tajhotels.com
http://www.tajgvk.in
Management
NamePosition Held
Dr. GVK ReddyNon Executive Chairman
Mrs. G Indira Krishna ReddyManaging Director
Mrs. Shalini BhupalJoint Managing Director
Mr. Krishna R BhupalNon Exe.Non Ind.Director
Mr. Anoop Vrajlal MehtaNon Exe.Non Ind.Director
Mr. Prabhat VermaNon Exe.Non Ind.Director
Dr. Nabakumar ShomeAdditional Non Exe.Non Ind.Director
Mr. D R KaarthikeyanIndependent Director
Mr. M B N RaoIndependent Director
Mr. N Anil Kumar ReddyIndependent Director
Mr. N Sandeep ReddyIndependent Director
Mrs. L V SubrahmanyamIndependent Director
Dr. Dinaz NoriaIndependent Director
Mr. N Ramesh KumarAddnl. & Ind.Director

FAQ

What is the latest intrinsic value of Taj GVK Hotels & Resorts Ltd?

The latest intrinsic value of Taj GVK Hotels & Resorts Ltd as on 21 November 2024 is ₹343.29, which is 2.17% higher than the current market price of ₹336.00.

What is the Market Cap of Taj GVK Hotels & Resorts Ltd?

The Market Cap of Taj GVK Hotels & Resorts Ltd is 2,108 Cr..

What is the current Stock Price of Taj GVK Hotels & Resorts Ltd as on 21 November 2024?

The current stock price of Taj GVK Hotels & Resorts Ltd as on 21 November 2024 is ₹336.

What is the High / Low of Taj GVK Hotels & Resorts Ltd stocks in FY 2024?

In FY 2024, the High / Low of Taj GVK Hotels & Resorts Ltd stocks is 423/217.

What is the Stock P/E of Taj GVK Hotels & Resorts Ltd?

The Stock P/E of Taj GVK Hotels & Resorts Ltd is 25.6.

What is the Book Value of Taj GVK Hotels & Resorts Ltd?

The Book Value of Taj GVK Hotels & Resorts Ltd is 90.2.

What is the Dividend Yield of Taj GVK Hotels & Resorts Ltd?

The Dividend Yield of Taj GVK Hotels & Resorts Ltd is 0.45 %.

What is the ROCE of Taj GVK Hotels & Resorts Ltd?

The ROCE of Taj GVK Hotels & Resorts Ltd is 18.8 %.

What is the ROE of Taj GVK Hotels & Resorts Ltd?

The ROE of Taj GVK Hotels & Resorts Ltd is 14.8 %.

What is the Face Value of Taj GVK Hotels & Resorts Ltd?

The Face Value of Taj GVK Hotels & Resorts Ltd is 2.00.

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 Taj GVK Hotels & Resorts 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