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

Fundamental Analysis of Taj GVK Hotels & Resorts Ltd

About the Company - Taj GVK Hotels & Resorts Ltd

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. G V K 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. D R KaarthikeyanIndependent Director
Mr. M B N RaoIndependent Director
Mr. N Anil Kumar ReddyIndependent Director
Mr. N Sandeep ReddyIndependent Director
Mr. A RajasekharIndependent Director
Mrs. Dinaz NoriaIndependent Director
Mr. L V SubrahmanyamIndependent Director
Mr. Ashish SethAdditional Non Exe.Non Ind.Director
Mr. Prabhat VermaAdditional Non Exe.Non Ind.Director

Taj GVK Hotels & Resorts Ltd. Share Price Update

Share PriceValue
Today₹356.80
Previous Day₹354.40

Basic Stock Data of Taj GVK Hotels & Resorts Ltd

Market Cap 2,456 Cr.
Current Price 392
High / Low414/174
Stock P/E39.0
Book Value 78.5
Dividend Yield0.00 %
ROCE21.8 %
ROE18.4 %
Face Value 2.00

Data Source: screener.in

Competitors of Taj GVK Hotels & Resorts Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Royal Orchid Hotels Ltd 1,144 Cr. 417449/21925.7 66.90.45 %24.5 %31.6 % 10.0
Sri Havisha Hospitality & Infrastructure Ltd 81.0 Cr. 2.673.78/1.60 1.080.00 %6.36 %4.52 % 2.00
TGB Banquets & Hotels Ltd 49.7 Cr. 17.020.5/7.7032.7 26.60.00 %3.48 %1.77 % 10.0
Speciality Restaurants Ltd 1,154 Cr. 240287/16816.1 59.91.04 %17.2 %37.2 % 10.0
Viceroy Hotels Ltd 15.3 Cr. 3.603.67/1.75 1040.00 %7.64 %% 10.0
Industry Average29.6 Cr136.0514.951.70.3%11.84%15.02%8.4

Taj GVK Hotels & Resorts Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1036442556826486891051049289
Expenses14263928425351565872786568
Operating Profit-3105-4142913303133252622
OPM %-33%28%11%-15%24%35%20%35%35%31%24%29%24%
Other Income00200011250301
Interest5555545444433
Depreciation4444444444444
Profit before tax-131-2-125205234826211916
Tax %27%26%32%27%29%39%49%30%34%33%30%32%30%
Net Profit-91-1-94123163217141311
EPS in Rs-1.480.15-0.19-1.430.591.990.432.555.122.762.302.111.78

Taj GVK Hotels & Resorts Ltd Quarterly Chart

Taj GVK Hotels & Resorts Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales25425324424827026428831731394227384390
Expenses17619219219920720621724823896175265284
Operating Profit786151496358726974-252119106
OPM %31%24%21%20%23%22%25%22%24%-2%23%31%27%
Other Income2-0522837131294
Interest15222328312925222320191514
Depreciation22252525181817171717161514
Profit before tax43149-21519323836-361911882
Tax %31%35%43%-8%46%44%34%36%34%27%47%32%
Net Profit2995-2810212424-26108056
EPS in Rs4.681.400.79-0.311.311.663.353.883.80-4.221.5812.738.95
Dividend Payout %32%36%25%0%31%24%18%15%0%0%0%8%

Taj GVK Hotels & Resorts Ltd Profit & Loss Yearly Chart

Taj GVK Hotels & Resorts Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:6%
3 Years:7%
TTM:15%
Compounded Profit Growth
10 Years:24%
5 Years:31%
3 Years:50%
TTM:-7%
Stock Price CAGR
10 Years:20%
5 Years:16%
3 Years:46%
1 Year:121%
Return on Equity
10 Years:4%
5 Years:6%
3 Years:5%
Last Year:18%

Taj GVK Hotels & Resorts Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital13131313131313131313131313
Reserves327332336334343350368388399372382462480
Borrowings189228232286270255227197209225214141127
Other Liabilities90818695106121140122122113123155162
Total Liabilities619654667727731738748719743723731770781
Fixed Assets453448430408454440427416436423409455448
CWIP32425775707781929187864360
Investments364551110110110110110110110110110110
Other Assets9811912913496111130101106102127162163
Total Assets619654667727731738748719743723731770781

Taj GVK Hotels & Resorts Ltd Reserves and Borrowings Chart

Taj GVK Hotels & Resorts Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 743461546261755975553100
Cash from Investing Activity -95-39-37-78-17-11-8-16-3-01-17
Cash from Financing Activity 185-2424-45-47-55-56-66-2-31-79
Net Cash Flow-300-10211-1363234

Taj GVK Hotels & Resorts Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days101114191816242118371522
Inventory Days981191209310699799022810777
Days Payable3952603363835657214534901,580784703
Cash Conversion Cycle-286-131-202-27218-443-597-353-382-1,316-662-605
Working Capital Days-62-35-47-28-43-66-79-60-48-95-42-4
ROCE %12%7%5%4%7%7%9%10%10%-3%6%22%

Taj GVK Hotels & Resorts Ltd Financial Efficiency Indicators Chart

Taj GVK Hotels & Resorts Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.98%
FIIs0.00%0.00%0.05%0.45%0.40%0.25%0.40%0.52%0.33%0.93%0.94%0.80%
DIIs5.35%2.01%0.84%1.83%2.12%3.24%3.58%4.42%4.22%4.27%3.60%3.46%
Public19.66%23.01%24.12%22.73%22.49%21.53%21.03%20.08%20.44%19.80%20.47%20.75%
No. of Shareholders42,84857,64658,53564,03861,40562,65761,49059,90360,80661,20166,23567,314

Taj GVK Hotels & Resorts Ltd Shareholding Pattern Chart

No. of Taj GVK Hotels & Resorts Ltd Shareholders

Taj GVK Hotels & Resorts Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
ITI Small Cap Fund8330510.9619.06
Quant Small Cap Fund8286940.1518.96
ITI Multi Cap Fund2460930.725.63
Sundaram Long Term Micro Cap Tax Advantage Fund - Series III657971.781.51
Sundaram Long Term Micro Cap Tax Advantage Fund - Series V334312.280.76
Sundaram Long Term Micro Cap Tax Advantage Fund - Series VI321521.770.74
Sundaram Long Term Micro Cap Tax Advantage Fund - Series IV312561.740.72
Sundaram Long Term Tax Advantage Fund - Series III1620710.37
Sundaram Long Term Tax Advantage Fund - Series IV101350.940.23

Taj GVK Hotels & Resorts Ltd ROCE Trend

Taj GVK Hotels & Resorts Ltd EPS Trend

Taj GVK Hotels & Resorts Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)14.830.30-6.323.724.32
Diluted EPS (Rs.)14.830.30-6.323.724.32
Cash EPS (Rs.)15.064.06-1.586.486.54
Book Value[Excl.RevalReserv]/Share (Rs.)73.5758.7458.5464.8662.50
Book Value[Incl.RevalReserv]/Share (Rs.)73.5758.7458.5464.8662.50
Revenue From Operations / Share (Rs.)61.1836.2215.0249.8650.54
PBDIT / Share (Rs.)23.568.430.0712.0212.19
PBIT / Share (Rs.)21.235.95-2.579.349.52
PBT / Share (Rs.)18.772.99-5.745.736.08
Net Profit / Share (Rs.)12.731.58-4.223.803.88
NP After MI And SOA / Share (Rs.)14.880.33-6.374.484.34
PBDIT Margin (%)38.5123.270.4924.1024.11
PBIT Margin (%)34.7016.43-17.0818.7318.84
PBT Margin (%)30.688.24-38.2211.4912.03
Net Profit Margin (%)20.804.36-28.087.637.67
NP After MI And SOA Margin (%)24.320.92-42.438.988.58
Return on Networth / Equity (%)20.220.57-10.886.906.93
Return on Capital Employeed (%)21.016.38-2.678.949.66
Return On Assets (%)12.310.29-5.673.803.82
Long Term Debt / Equity (X)0.140.320.370.340.40
Total Debt / Equity (X)0.200.460.380.340.40
Asset Turnover Ratio (%)0.520.310.120.430.43
Current Ratio (X)1.000.590.440.580.45
Quick Ratio (X)0.930.530.370.490.37
Interest Coverage Ratio (X)9.582.840.023.333.54
Interest Coverage Ratio (Post Tax) (X)6.171.53-0.322.052.13
Enterprise Value (Cr.)1234.951091.35813.47776.341647.10
EV / Net Operating Revenue (X)3.224.818.642.485.20
EV / EBITDA (X)8.3620.651733.0010.3021.56
MarketCap / Net Operating Revenue (X)3.074.217.272.064.70
Price / BV (X)2.552.591.871.583.80
Price / Net Operating Revenue (X)3.074.217.272.064.70
EarningsYield0.070.00-0.050.040.01

Taj GVK Hotels & Resorts Ltd Profitability Ratios (%)

Taj GVK Hotels & Resorts Ltd Liquidity Ratios

Taj GVK Hotels & Resorts Ltd Liquidity Ratios (%)

Taj GVK Hotels & Resorts Ltd Interest Coverage Ratios (X)

Taj GVK Hotels & Resorts Ltd Valuation Ratios

Fair Value / Intrinsic Value of Taj GVK Hotels & Resorts Ltd

Fair Value: ₹574.58

The stock is undervalued by 46.58% compared to the current price ₹392

*Investments are subject to market risks

Strength and Weakness of Taj GVK Hotels & Resorts Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -50.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -326.33, which is a positive sign.
  3. The company has higher reserves (374.85 cr) compared to borrowings (215.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (272.77 cr) and profit (29.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.69 and average Dividend Yield of 14.32%.
  2. The stock has a low average ROCE of 8.00%, which may not be favorable.

Should I Buy Taj GVK Hotels & Resorts Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Taj GVK Hotels & Resorts Ltd:
    1. Net Profit Margin: 20.80%
      • 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: 21.01% (Industry Average ROCE: 8.11%)
      • 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): 6.17
      • 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: 0.93
      • 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: 36.1 (Industry average Stock P/E: 38.04)
      • 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: 0.20
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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