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Advani Hotels & Resorts (India) Ltd. Stock Analysis

Small Cap
Evaluated by 294 users | BSE: 523269 | NSE: ADVANIHOTR |
Hotel, Resort & Restaurants
Advani Hotels & Resorts was incorporated on March 13, 1987, at Mumbai and obtained it’s Certificate of commencement of business on July 15. The company has been promoted by Sunder G. Advani and Haresh G. Advani. The promoters of the company have been in the hotel industry for more...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 1.24%4.82%9.14%7.54%6.62%9.32%14.97%20.54%19.25%21.85%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 31.734.336.638.739.848.553.159.662.570.3
Y-o-Y Gr. Rt.-8.1%6.8%5.6%2.8%21.9%9.5%12.3%4.8%12.5%
Adjusted EPS (Rs.) -0.070.230.520.490.370.751.371.91.882.46
Y-o-Y Gr. Rt.-NA126.1%-5.8%-24.5%102.7%82.7%38.7%-1.1%30.9%
Book Value per Share (Rs.) 6.346.56.716.987.197.368.169.0110.311.79
Adjusted Net Profit -0.31.12.42.21.73.56.38.88.711.4
Net Op. Cash Flow (Rs. Cr.) 3.11.587.7109.812.41415.411.4
Debt to Cash Flow from Ops 5.124.951.531.871.791.520.620.050.050.15
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Advani Hotels & Resorts (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.2%12.1%9.8%12.5%
Adjusted EPS NA46.1%21.6%30.9%
Book Value per Share 7.110.413.114.5
Share Price 5.1% -1.2% -12% -12.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -1.123.577.857.095.2610.3517.6622.1719.4822.28
Operating Profit Margin (%) 10.0610.3120.4120.5617.6523.425.5928.7724.4223.04
Net Profit Margin (%) -1.033.096.545.84.337.1811.9214.7513.9116.18
Debt to Equity 0.540.240.390.440.540.440.210.020.020.03
Working Capital Days 2121567471725250464340
Cash Conversion Cycle -22-19-61106105-3-2
Entity Percentage Holding
Promoters 50.17%
Institutions 0.11%
Non-Institutions 49.72%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Advani Hotels & Resorts (India) Ltd.'s performance infers:

Advani Hotels & Resorts (India) Ltd. earnings have grown by 46.1%, whereas share price has depreciated -1.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Advani Hotels & Resorts (India) Ltd. share prices over the last 10 years. Here is what we found out:

Advani Hotels & Resorts (India) Ltd. share price has depreciated 1.3% annually over the past ten years.

Advani Hotels & Resorts was incorporated on March 13, 1987, at Mumbai and obtained it’s Certificate of commencement of business on July 15. The company has been promoted by Sunder G. Advani and Haresh G. Advani. The promoters of the company have been in the hotel industry for more than 35 years.

The company was originally promoted in technical and financial collaboration with Ramada (UK) Limited for setting up a 5-star luxury beach resort at Varca, Goa. Today, Ramada

Advani Hotels & Resorts was incorporated on March 13, 1987, at Mumbai and obtained it’s Certificate of commencement of business on July 15. The company has been promoted by Sunder G. Advani and Haresh G. Advani. The promoters of the company have been in the hotel industry for more than 35 years.

The company was originally promoted in technical and financial collaboration with Ramada (UK) Limited for setting up a 5-star luxury beach resort at Varca, Goa. Today, Ramada International is a part of Wyndham Worldwide, U.S.A. Wyndham Worldwide is one of the world’s largest hotel and real estate brokerage franchisor, the world's largest vacation ownership organisation and one of the world's largest car rental operators.

The company is managing a 5-star deluxe luxury beach resort, 'The Ramada Caravela Beach Resort', which is spread over 23 acres, comprising of 192 rooms, 4 suites and 6 villas with private balconies, which overlook the landscaped gardens, the golf course and the Arabian Sea. The resort is located on the serene white sands of Varca beach, Goa. The resort which gives a picture of authentic Hawaiian architecture has been designed by Wimberley, Allison, Tong and Goo - the creators of the famous Sun City. The Ramada Caravela Beach Resort has been the recipient of the Best Hotel Resort Award in 1998, at ITB (International Tourisms - Boerse) in Berlin.

In 1995-96, the company set up a flight kitchen namely, the 'Airport Plaza' as an ancillary business. The 'Airport Plaza', is located 3 minutes away from the airport on 1.5 acres of land and caters to several domestic and international charter flights. Apart from being a flight kitchen, it also has a restaurant, bar, banqueting facilities.

In 2000-01, the vompany formed a subsidiary company namely, ‘Advani Pleasure Cruise Company Pvt. Ltd.’ in collaboration with CAI Casinoinvest International GMBH Austria, to carry on the business of a Casino and restaurant on board a pleasure cruise in and around Goa. The cruise ship has the only live gaming, full-fledged casino on board in India.

The company undertook to set up a 5-star luxury resort comprising 140 rooms (including 6 villas) in a terraced garden pattern in an estate on the Lova beach Veria Goa. Gherzi Eastern Ltd; was to provide detailed architectural planning & designing of technical installation & utilities as also day-to-day supervision at the site through out the implementation of the project. The project was expected to be commissioned by October/November. However due to non-availability of the company's hotel from `Ramada Hotel' to Ramada Renissance Resort' the completion was delayed. The soft opening of Ramada Renaissance Resort was made in June to April 1991.

The company had entered into an agreement with Ramada (UK) Ltd. for pre and post opening technical marketing & sales assistance assistance in recruiting & training of personnel etc. The company would be linked to Ramadas computerised reservation system operated throughout its sales offices worldwide.

Recent developments

Advani Hotels & Resorts, which pioneered the offshore casino and restaurant business in Goa a decade ago, is planning to exit the business.At a recent board meet, the promoters decided to explore the option of disposing of the company's investment in the casino subsidiary, Advani Pleasure Cruise (APCCPL).

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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