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These 7 hospitality stocks have risen over 40% in a year despite weak quarterly numbers

The December quarter sales of most of these companies were less than half of what they were in the year-ago period and six of the firms reported losses in the third quarter but the stock price has continued to rise.

April 07, 2021 / 02:36 PM IST
The hospitality business was one of the hardest hit by the coronavirus outbreak that is once again threatening the country’s economy. During April-May 2020, business came to standstill as lockdown prevented movement of people but as restrictions were eased in a phased manner, demand picked up. Some companies in the hospitality business did manage to beat back pandemic blues. Moneycontrol has analysed seven hotel stocks that have gained more than 40 percent over the last one year despite weak quarterly numbers. We only looked at companies with a market cap of more than Rs 250 crore. These companies’ sales more than halved in the December quarter compared to the year-ago period. Six of the seven companies reported losses in the December quarter. Mutual funds and foreign institutional investors, too, pared their holdings in these companies in the December quarter when compared to March 2020. The Indian Hotel Company has been an exception, seeing a rise in FIIs holding in December 2020 after a decline in the previous two quarters. (Data Source: ACE Equity)
The hospitality business was one of the hardest hit by the coronavirus outbreak that is once again threatening the country’s economy. During April-May 2020, business came to standstill as lockdown prevented movement of people but as restrictions were eased in a phased manner, demand picked up. Some companies in the hospitality business did manage to beat back pandemic blues. Moneycontrol has analysed seven hotel stocks that have gained more than 40 percent over the last year despite weak quarterly numbers. We only looked at companies with a market cap of more than Rs 250 crore. These companies’ sales were reduced by more than a half in the December quarter compared to the year-ago period. Six of the seven companies reported losses in the December quarter. (Data Source: ACE Equity)
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India Tourism Development Corporation Ltd. | In the last one year, the stock has risen 185 percent—from Rs 131.70 on April 3, 2020 to Rs 375.45 on April 5, 2021. In the December quarter, the company's sales fell by 58 percent to Rs 44 crore against Rs 105.53 crore in December 2019. The company posted a net loss of Rs 10 crore in December 2020.
Advani Hotels & Resorts (India) | The stock has risen 88 percent—from Rs 30.45 on April 3, 2020 to Rs 57.25 on April 5, 2021. In the December quarter, the company's sales fell by 44 percent to Rs 12.24 crore against Rs 21.98 crore in December 2019. Advani Hotels posted a net profit of Rs 1.61 crore in December 2020.
Advani Hotels & Resorts (India) | The stock has risen 88 percent—from Rs 30.45 on April 3, 2020 to Rs 57.25 on April 5, 2021. In the December quarter, the company's sales fell by 44 percent to Rs 12.24 crore against Rs 21.98 crore in December 2019. Advani Hotels posted a net profit of Rs 1.61 crore in December 2020.
HLV Ltd. | In the last one year, the stock has risen 81 percent—from Rs 3.30 on April 3, 2020 to Rs 5.96  on April 5, 2021. In the December quarter, the company's sales fell by-84 percent to Rs 6.95 crore against Rs 43.69 crore in December 2019. The company posted a net loss of Rs -11.20 crore in December 2020.
HLV Ltd. | Over the last year, the stock has risen 81 percent—from Rs 3.30 on April 3, 2020 to Rs 5.96  on April 5, 2021. In the December quarter, the company's sales tanked 84 percent to Rs 6.95 crore against Rs 43.69 crore in December 2019. The company reported a net loss of Rs 11.20 crore in December 2020.
Lemon Tree Hotels Ltd. | In the last one year, the stock has risen 77 percent—from Rs 20.10 on April 3, 2020 to Rs 35.60  on April 5, 2021. In the December quarter, the company's sales fell by-66 percent to Rs 68.38 crore against Rs 199.62 crore in December 2019. The company posted a net loss of Rs -45.66 crore in December 2020.
Lemon Tree Hotels Ltd. | In the last year, the stock has risen 77 percent—from Rs 20.10 on April 3, 2020 to Rs 35.60  on April 5, 2021. In the December quarter, the company's sales fell by 66 percent to Rs 68.38 crore against Rs 199.62 crore in December 2019. It posted a net loss of Rs 45.66 crore in December 2020.
Mahindra Holidays & Resorts India Ltd. | In the last one year, the stock has risen 69 percent—from Rs 133.85 on April 3, 2020 to Rs 226.65  on April 5, 2021. In the December quarter, the company's sales fell by-17 percent to Rs 489.15 crore against Rs 588.26 crore in December 2019. The company posted a net loss of Rs -0.70 crore in December 2020.
Mahindra Holidays & Resorts India Ltd. | The stock has risen 69 percent in the last one year—from Rs 133.85 on April 3, 2020 to Rs 226.65  on April 5, 2021. In the December quarter, the company's sales fell by 17 percent to Rs 489.15 crore against Rs 588.26 crore in December 2019. The company posted a net loss of Rs 0.70 crore in December 2020.
The Indian Hotels Company Ltd. | In the last one year, the stock has risen 56 percent—from Rs 69.40 on April 3, 2020 to Rs 108.10  on April 5, 2021. In the December quarter, the company's sales fell by-59 percent to Rs 559.86 crore against Rs 1372.72 crore in December 2019. The company posted a net loss of Rs -117.66 crore in December 2020.
Indian Hotels Company Ltd. | In the last one year, the stock has risen 56 percent—from Rs 69.40 on April 3, 2020 to Rs 108.10  on April 5, 2021. In the December quarter, the company's sales fell by 59 percent to Rs 559.86 crore against Rs 1372.72 crore in December 2019. The company posted a net loss of Rs 117.66 crore in December 2020.
EIH Ltd. | In the last one year, the stock has risen 42 percent—from Rs 65.17 on April 3, 2020 to Rs 92.55  on April 5, 2021. In the December quarter, the company's sales fell by-65 percent to Rs 179.16 crore against Rs 509.55 crore in December 2019. The company posted a net loss of Rs -42.92 crore in December 2020.
EIH Ltd. | The share has risen 42 percent in one year—from Rs 65.17 on April 3, 2020 to Rs 92.55  on April 5, 2021. In the December quarter, the company's sales declined 65 percent to Rs 179.16 crore against Rs 509.55 crore in December 2019. EIH posted a net loss of Rs 42.92 crore in December 2020.
Ritesh Presswala Research Analyst at Moneycontrol
first published: Apr 7, 2021 02:04 pm

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