Asian Hotels (West) can move to Rs 200: SP Tulsian

Asian Hotels (West) can move to Rs 200, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Asian Hotels (West) has the property Hyatt Regency, which is near the Sahar Airport in Mumbai plus they are holding 50.5% in 130 room Boutique Hotel at Bangalore. In fact they increased their stake in this Boutique hotel in Bangalore just couple of months back from 32% to 50% plus, so now it has become a subsidiary and the company will get qualified to consolidate the accounts. Apart from that they are setting up a new hotel in Delhi with 523 keys. This hotel in Delhi is being set up in JV with IDFC. IDFC is holding 34% stake, this company is holding 66% stake and the total project cost of the Delhi hotel is Rs 700 crore plus."
 
He further added, "Apart from that the marketcap of the company is just Rs 170 crore. Even if I apportion the enterprise value for this two properties one in Mumbai and second in Bangalore, I think this makes the stock quite cheap. The Hotel has posted an EPS of Rs 14 for FY11."

"The group has seen the recent restructuring into three parts, Asian Hotels West, North and East. This company has been declaring good dividends, 40% dividend was paid last year. And if you have focus on Delhi, Bangalore, and Mumbai that can really qualify has a very good hotel stock. So it looks to have corrected a lot and doesn