Royal Orchid Hotels: Up only 2.5% in a year but Nuvama sees 63% upside going ahead – key reasons
Royal Orchid Hotels (ROHL) with a target price of ₹498, indicating an upside of 63 percent. "We remain positive on the industry given the favourable demand-supply dynamics in the near-to-medium term. We expect growth for ROHL to outpace peers, given its lower base, extensive room addition pipeline, and improving brand recognition, which will help to narrow the valuation gap with its peers," it said.
However, the stock has just gained 2.5 percent in the last 1 year. Meanwhile, it has advanced 21.5 percent in 2023 YTD. It has risen 5 percent in November, snapping 3 straight months of losses.
The stock is still over 20 percent away from its record high of ₹384.75, hit on May 25, 2023. Meanwhile, it has advanced 48 percent from its 52-week low of ₹206.35, hit on December 23, 2022. In the September quarter, the company's net profit fell 16.6 percent to ₹4.94 crore from ₹5.92 crore in the year-ago period.
Meanwhile, its net sales rose 18.5 percent to ₹44.51 crore in the September 2023 quarter from ₹37.56 crore in the September 2022 quarter. Its EBITDA came in at ₹14.02 crore in the quarter under review, up 5.41 percent from ₹13.30 crore in the same period last year. Revenue in line on strong room additions: Revenue grew on strong room additions and growth in income from F&B and other services.
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