Hotel Leela may give 30-35% returns, says SP Tulsian

Hotel Leela may give 30-35% returns with very minimal downside risk, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I am going by couple of statements having issued by Hotel Leela management maybe in last four or six months. When there was the question asked to the management that in case of hostile bid they said no we have done good homework and they openly said that we lookup on Reliance. In case anything happens they will come to the rescue in the form of whatever arrangements, it is not spelt out.”
He further added, “In the form of the monetisation of the surplus land or maybe the surplus properties and the management has categorically said that they are looking to make the company debt free in next one year. In fact I found that statement to be quite bold that they are taking a call of making the company debt free maybe in next one year. So, they are definitely looking for sale of the properties. They may look to sell some of the hotel projects also and apart from that some of the properties which is being talked to or is being sold to the Reliance Industries. In fact they have surplus property in Mumbai also adjacent to Hotel Leela which they have in fact planning to monetize and some of the other assets as well. So, definitely things will start happening on that front and if somebody can keep a view of about one year on the stock I think he can look to expect a return of about 30-35 percent with very minimal downside risk there too.”