Oriental Hotels - Is it better than Indian Hot
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2389
Printed Date: 21/Apr/2025 at 12:06pm
Topic: Oriental Hotels - Is it better than Indian Hot
Posted By: studentoflife
Subject: Oriental Hotels - Is it better than Indian Hot
Date Posted: 12/Sep/2009 at 6:22pm
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From a valuations perspective,dividends and performance perspective Indian Hotels Subsidiary - Oriental hotels seems to be a better buy compared to the parent company.
Please provide your comments. ------------- First step towards learning is the realization that you do not know anything. |
Replies:
Posted By: Vivek Sukhani
Date Posted: 12/Sep/2009 at 8:22pm
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I agree.....as its almost into business hotels, it will show the improved performance first before the leisure hotels start showing better results. As they say, business precedes all interests......
Another hotel company you may look at is Gujarat Hotels, owned by ITC. ------------- Jai Guru!!! |
Posted By: studentoflife
Date Posted: 16/Sep/2009 at 4:38am
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But Gujarat hotels seems to be a microcap.Also it is not showing steady growth.
But dividend yield is good.
Oriental hotels has grown tremendously in the past five year.So it seems both growth and dividend.Please advice.
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Posted By: Mohan
Date Posted: 16/Sep/2009 at 9:22am
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For business hotels, Royal Orchid is worth a look.
------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: studentoflife
Date Posted: 18/Sep/2009 at 8:33am
Mohan in my humble opinion,Royal Orchid is certainly an undervalued stock ,but its ROE and ROIC is less.It is highly leveraged and the impact of first six months of 2009 is yet to be seen.
It therefore doesnt seen to be self sustaining and in 2006 (capital markets ) and again in 2009(high debt) has seen additional infusion of capital for growth.
What do you say?
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Posted By: studentoflife
Date Posted: 18/Sep/2009 at 8:54am
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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:
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. ------------- First step towards learning is the realization that you do not know anything. |
Posted By: rajnsharma
Date Posted: 19/Sep/2009 at 2:12pm
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What about Hotel Leela. I have stayed in their property at multiple locations and have found it very good. Even among the vistors, especially on company tour it's the first choice for sure in Bangalore. They are coming up with new propertis at places like Udaypur and Delhi(already started) and few more.
Stock has been a 6 bagger in last 10 years, even at a current price. Any ideas on this?
Regards,
Raj
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Posted By: Mohan
Date Posted: 19/Sep/2009 at 9:23pm
I agree. The point I am making is that they are focused on the business traveler. Last 6 months for all hotel companies are not worth remembering. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: studentoflife
Date Posted: 20/Sep/2009 at 8:13am
I think it is a great stock .The company has good cash flows ,so if it is successful in managing its high leverage, then it can be a multibagger even now.
But I follow WB philosophy : Always invest in companies which has very little or no leverage.
It reduces risk.
BUt again...this discussion is started for Oriental hotels and comparison with Indian hotels......
 ------------- First step towards learning is the realization that you do not know anything. |
Posted By: studentoflife
Date Posted: 26/Apr/2010 at 7:12am
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Pros:
1)This is one of those stocks whose management does not try to come into the limelight unnecessarily. 2)The management is pretty honest in its annual report and is modest in its claims. 3)Promoter holding steadily increasing.Peter lynch has mentioned this to be one important point in determining an undervalued stock. Dec 2009 56.10 % and Dec 2008 55.05 % Cons Oriental hotels management is involved in a lot of buying and selling of its own stock. ------------- First step towards learning is the realization that you do not know anything. |
Posted By: studentoflife
Date Posted: 04/Aug/2010 at 9:27am
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Why is this share suddenly on the rise? Is it because of stock split?
------------- First step towards learning is the realization that you do not know anything. |
Posted By: studentoflife
Date Posted: 27/Oct/2010 at 1:18am
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http://economictimes.indiatimes.com/features/investors-guide/Long-term-investors-can-buy-Oriental-Hotels-at-current-price/articleshow/6214858.cms - http://economictimes.indiatimes.com/features/investors-guide/Long-term-investors-can-buy-Oriental-Hotels-at-current-price/articleshow/6214858.cms ------------- First step towards learning is the realization that you do not know anything. |
Posted By: mohitrathi8
Date Posted: 28/Oct/2010 at 2:15pm
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speaking of hotels, I find Asian Hotels (North) and UP hotels to be trading quite below intrinsic value. Comments and analysis welcome. ------------- Good stocks can go down for no reason. Bad stocks can go up for no reason. |
Posted By: Ravenrage
Date Posted: 28/Oct/2010 at 7:51am
| Taj GVK ? |