The following are the reasons why I feel Oriental hotels is a good stock:
1) From the year 1989 to 1999 the company has seen continuous sales growth.
2)Same was repeated from 2004 to 2008 both years inclusive.
3)From 2000- 2003 there was inconsistent sales growth or reduction in sales.But again there seems to be no loss in value.This seems to be from hiving of some assets .There has been increase in reserves correspondingly.
4)From 2005 to 2008 sales have grown by 62 % but EPS has grown by 250 % ..
5)Oriental hotels has established itself in tier 2 cities and seems to be ahead of the crowd.Seems to be an effective moat.Seaside beach.All depreciated assets.
6) It is part of TATA group and is part of TAJ brand.
7)DPS was Rs 9 during down turn.
8)Management shareholding has grown during the last two years.As per rediff more than 10% .But as per NSE india 1 %...
9)I suspect it to be a repeat story of Tata Infotech - TCS..
10)Till last year there was no leverage.
11)Last five year Cash flows in crores:
| 53.67 |
49.39 |
48.10 |
33.06 |
27.28 |
12)Free reserve per share Rs 145.17 for a current price of Rs 220. Was available at Rs 150 just during the recent past.Effectively free!!!!!
13)Management hasnt unnecessarily diluted equity.
14)Of course can be still bought at a cheap price.
All senior members and other experts kindly provide your comments.
Edited by studentoflife - 04/Aug/2010 at 9:26am
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