INDHOTEL & PAGEIND Shock Dalal Street with Q2 Gains, Stocks SoarThe Indian Hotels
◉ Key Financial Metrics
● Net Profit: IHCL's consolidated net profit soared by 232% year-on-year to ₹554.6 crore, up from ₹167 crore in the same quarter last year.
● Revenue: The company achieved a revenue increase of 27.4%, reaching ₹1,826 crore, compared to ₹1,433 crore a year ago.
● EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 40% to ₹565 crore, with an EBITDA margin of 29.9%.
◉ Operational Highlights
● IHCL's hotel segment revenue grew by 16%, supported by a strong occupancy rate of 75% in its international portfolio.
● The company signed 42 new hotels, expanding its portfolio to 350 properties globally.
◉ Technical Standings
● The stock has broken through its previous resistance and is nearing the upper boundary of its ascending channel.
● A breakout above this level could fuel further gains.
Page Industries
◉ Key Financial Metrics
● Net Profit: Increased by 30% to ₹195.25 crore, up from ₹150.27 crore in the same quarter last year.
● Revenue: Rose by 11.06% to ₹1,246.27 crore, compared to ₹1,122.11 crore a year ago, supported by a 6.7% increase in sales volume (55.2 million pieces sold).
● EBITDA: Grew by 22.1% to ₹281.5 crore, reflecting improved operational efficiency and stable input costs.
◉ Strategic Outlook
● The company is focused on digital transformation and e-commerce initiatives, maintaining its margin guidance for FY25 at 19-21%, which underscores its commitment to sustained profitability.
◉ Technical Standings
● The stock's uptrend remains intact, with higher highs and lows.
● Recent breakout, accompanied by strong volume, suggests the rally will continue.
Indianhotels
Crab -Ind hotel The price close above the B point which is considered as the breakout in price action.
As on Aug 26,2024, the Fundamentals of THE INDIAN HOTELS COMPANY look Strong and hence it may be good for long term investment! See Financial Performance of THE INDIAN HOTELS COMPANY . Please look at the other parameters such as Valuation, Price Momentum, News & Corporate Governance and/or consult an Investment Advisor before taking an investment decision!
This is for educational purposes only.
INDIAN HOTELS - Swing Trade Analysis - 8th June #stocksINDIAN HOTELS (1D TF) - Swing Trade Analysis given on 8th June, 2024
Pattern: FALLING WEDGE BREAKOUT
- Resistance Breakout - Done ✓
- Volume Buildup at Resistance - Done ✓
- Demand Zone Retest & Consolidation - In Progress
Please Note:
- Because of Fridays crazy move in the Nifty, there might be a pull back till the Trendline so ensure correct position sizing
- If not, then it automatically gives us a small SL and you can pyramid into as it rises
* Disclaimer
Unlocking Secrets of Booming Hotel Industry: Essential Research!Discovering the Potential of the Booming Hotel Industry: Vital Perspectives for Hotel Industry Research!
Overview of the Tourism and Hotel Sector
~ Tourism has become very important in India. It brings in a lot of money from other countries and helps create jobs. The increase in tourists also means more business for hotels.
~ India is becoming a popular tourist destination and is ranked 6th in tourism and hospitality by the World Economic Forum. This is according to a report by the World Travel and Tourism Council (WTTC).
~ The tourism and hospitality industry in India is one of the top 10 industries that receives the most foreign investment. According to government data, the hotel and tourism sector received around $16.6 billion of foreign investment from April 2000 to September 2022.
~The Indian government is trying to make India a big tourism destination. They have a plan called " Project Mausam " to connect with other countries in the Indian Ocean and bring back old cultural and economic ties. Also, they have made it easier for tourists from 161 countries to visit India by offering electronic visas.
~A significant surge in India, thereby propelling the hospitality sector to thrive. This is primarily due to a marked increase in the volume of foreign and domestic travelers, leading to a corresponding increase in the demand for lodgings. Budget hotels have emerged as prevalent trend in India. Furthermore, international hotel companies have increasingly commenced considering the establishment of such hotels in India, given the latent source of growth that arises from the extant disparity between the burgeoning influx of tourists and the insufficient number of rooms to accommodate them.
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"Supply"
⁎ It has been predicted that the hospitality sector will be unable to keep pace with the sustained growth of the economy, projected to grow at an annual rate of 7%. In the coming five years, it is anticipated that around 40 multinational corporations within the hotel industry will establish a presence in India, yet the industry still remains unable to fulfill the long term demand.
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"Demand"
⁎ The burgeoning nature of tourism industry in India can be attributed to the burgeoning influx of both business and leisure travelers, along with the noticeable proliferation of medical tourism. During the apogee of the tourism season, from November to March, there is a discernible increase in demand. This can only be comprehended by those with an erudite background in the field.
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"Entrance Hindrances"
⁎ High Capital Intensity, Brand Recognition, Zoning and Regulatory Restrictions, Strong Competition, Economies of Scale, Customer Relationships
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"New cycle begun"
⁎ Travel within India is starting to recover and travel businesses have seen a big increase in earnings. Right now, the industry is almost back to its normal levels with occupancy at 63-65%. This new trend is just starting, India to host G20 Summit in Sept 2023, hold over 200 meetings. international travelers geopolitical events and global economy, which should support the hotel RevPAR growth. which will help hotels earn more money.
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⁎ The IMF predicts that India's economy will grow rapidly in the next few years. They expect India to have the highest growth rate, with a projected 7.4% in FY22-23 and 6.1% in FY23-24.
⁎ After removal of international travel restrictions, domestic travel remains the preferred choice for Indian nationals. Travel is not limited to pilgrimages only anymore and to places of one’s relatives as travellers are now more inclined to visit leisure and holiday destinations. Corporate travel has taken a new leap in the country, factoring in the growing economic activities. In fact, the pandemic has evolved a new work cum travel option in the form of workations, staycations and bleisure travel, which has further aided the domestic travel and hotel industry. Young people are starting to save money for travel and taking their trips more seriously.
⁎ Social media is also making people more aware of new places to visit. India has many places that could become great tourist destinations if developed. The demand for hotel rooms in India has increased dramatically, going up from 25,000 rooms per day to 90,000 rooms per day. This suggests that more and more people are traveling and choosing to stay in hotels, which is a positive trend for the tourism industry in the country.
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We will learn how to differentiate between a fundamentally strong hotel from a weaker one.
⁎ Examination of the Comprehensive Structure of India's Hotel Industry at a Macro Level. The Indian hotel sector is characterized by a highly fragmented landscape, with each city accommodating a mixture of both domestic and international chains and a considerable number of unbranded, predominantly family run establishments. The Ministry of Tourism classifies these establishments via the allocation of stars, such as standard, star, and heritage. In the branded segment, while the majority of the supply was once concentrated in high end properties, the shift towards a greater number of domestic travelers over the last decade has resulted in the proliferation of mid range branded hotels, which has accordingly expanded the room supply. This increase in supply has been derived from the conversion of non branded establishments and new construction projects. the Indian hotel industry operates in a crowded environment. This further constrains the pricing power of the industry.
⁎ The demand for hotels changes depending on the economy and the time of year. When the economy is doing well, people have more money to spend on vacations or business trips, which means more business for hotels. But when the economy is not doing well, people spend less money on these services, which can make it difficult for hotel companies to make money. This can be a big risk for the hotel business.
⁎ In the hotel industry, the demand for rooms can vary greatly throughout the year. Despite this, expenses such as power, lighting, and salaries are constant and can make up to 70% of a hotel's costs. Investors should be aware of this volatility and the fact that a hotel's quarter on quarter performance may fluctuate.
⁎ Starting a hotel requires a substantial amount of capital, including the cost of acquiring land and constructing the building. The process also involves obtaining local government approvals, negotiating contracts, and can take anywhere from four to six years. The long gestation period and two to three years it takes for a hotel to reach optimal operations makes the industry challenging.
⁎ There are ways to reduce the capital requirements, such as through a management contract model where the management of the hotel is separated from its ownership. This allows for the risk of operating a hotel to be shared among different entities, though the macro business risks of competition, funding cycles, and seasonality still remain. Despite these challenges, the hotel industry remains attractive.
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Some point to help us understand the comparison between different hotel companies.
First Revenue Per Available Room (RevPAR) . The Revenue Per Available Room (RevPAR) depicts the revenue generated from a single room, regardless of its occupancy status. It encompasses unsold or unoccupied rooms, thereby providing a precise representation. The four major hotel companies in the study,
NSE:INDHOTEL , NSE:CHALET , NSE:EIHOTEL & NSE:LEMONTREE , All strive to maximize their RevPAR, as it reflects not only the pricing of the rooms but also their occupancy rate. The company Charlotte has already surpassed its pre-COVID-19 RevPAR levels.
Let's look at example
The average sales price is approx. Rs. 4600 and unit costs are Rs. 1800 per room while occupancy rate is 80%. We can calculate RevPAR as follows: 200*(RevPAR/Unit Costs)+(1800/Unit Costs) = 1000+3400=3472
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Second the Occupancy Rate . The Occupancy Rate is the number of Occupied rooms divided by the number of available rooms. when the COVID-19 pandemic hit, the Occupancy Rate for both branded and unbranded hotels went way down in FY22. We will see some major hotel companies.
NSE:INDHOTEL "IHCL" includes (Taj Hotels, Vivanta Hotels, Ginger Hotels & Seleqtions Hotels)
NSE:EIHOTEL include (Oberoi Hotels, Trident Hotels & Maidens Hotels)
NSE:CHALET include (The Westin, Novotel Hotel and Resort, Marriott Hotels & Four Points)
Lemon Tree Hotels Include (Aurika Hotels, keys Select & Redfox)
There has been a substantial improvement in occupancy rates, Some companies already. reached pre COVID-19 levels high.
Let's look at example
Hotel has total 100 rooms and the average room rate (ARR) is 2,500 INR per room. The hotel's total room revenue for a given day is 100 rooms * 2,500 INR = 2,50,000 INR.
Hotel has an occupancy rate of 80%, this means that 80 rooms are occupied and the hotel earns 80 rooms * 2,500 INR = 2,00,000 INR in revenue from occupied rooms (Revenue from occupied rooms / Total room revenue) * 100
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Third Average Room Rate (ARR). The ARR calculates the average rental revenue per occupied room dividing the total revenue by the number of rooms occupied. COVID-19 pandemic had an impact on the ARR. Indian Hotels falls under the luxury and upscale category, Lemon Tree is a mid scale or economic brand, And Oberoi, Trident Hotels, are undergoing a process of reestablishment, with Indian Hotels having already reached its desired state.
Let's look at example
The Average Room Rate (ARR) is the average rate of a hotel room per night. Calculated by dividing the total revenue generated from the sale of rooms by the number of rooms sold.
If hotel generates revenue of ₹500,000 from the sale of 100 rooms in a month, the ARR would be ₹5,000 per room per night (500,000/100).
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Sector overview or Business overview
The hotel industry experiences marked fluctuations in profitability margins due to its cyclical nature. As a quadrant business, the evaluation of performance should be based on two key metrics: EBITDA margin and Return on Capital Employed (ROCE). The EBITDA margin, which represents the proportion of profits within a company's sales, holds significant significance across various industries. The four major hotel chains, including Lemon Tree, have experienced an improvement in margins through cost reduction measures. The objective for these companies is to attain a 33% EBITDA margin by 2025. The efficiency with which hotels allocate capital is equally important, as demonstrated by the ROCE metric. With the recent normalization, increase in consumer demand, and heightened operating margins, it is anticipated that the ROCE will settle within a range of 12-15%, after considering debt reduction. We have leveraged expectations. This is an important aspect because hotels are capital intensive. A company's balance sheet determines the level of stress its cash flows can sustain, especially during downturns. High leverage reduces a hotel company's financial flexibility, which also dilutes its efforts to raise funds for future projects.
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Key Ratios Analysis
1. Leverage Ratios
The Debt to Equity ratio is a financial metric that compares a company's total debt to its total equity. It is used to measure a company's financial leverage and its ability to pay off its debt obligations.
⁎ Debt/EBITDA ratio is a financial metric that measures a company's ability to pay off its debt obligations with its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio is used to evaluate the financial health of a company, particularly its debt burden and ability to service its debt obligations.
2. Liquidity Ratios
The current ratio used to determine a company's ability to pay its short term obligations. It is calculated by dividing the company's current assets by its current liabilities
⁎ The Cash ratio is financial ratio that measures a company's ability to pay off its current liabilities using only its most liquid assets, such as cash and cash equivalents. This ratio provides an indication of a company's liquidity and short term financial health.
When evaluating a hotel investment, it's important to consider whether there is a well-established and financially strong promoter group backing the company. promoter can help the hotel deal with difficulties in a more timely manner and even negotiate better rates from suppliers. This can be the difference between survival and bankruptcy, as we saw in the past when as many as 40% of hotels and restaurants in India shut down permanently. Indian Hotels Limited and Lemon Tree Hotels, among other prominent hospitality companies in India, enjoy the advantage of having formidable backing from influential promoters and substantial institutional support, respectively. As of December 2022, the percentage of promoter stake in Lemon Tree Hotels that was pledged had declined from 29.39% (December 2021) to a current value of 11.9%.
Thank you for reading my analysis of the hotel industry.
I hope it provided valuable insights into the performance and trends of the sector. If you have any questions or comments, feel free to leave them below.
Jai hind 🇮🇳
Indian Hotel Chart Analysis !! BrokeOut📈 Indian Hotels 📉
It broke out from Resistance Zone of 220-225 and it also closed above high of Oct 2021 with strong green candle. So I am biased on long side.
On Buy Side I am looking for Targets of 290.
StopLoss should be kept at 219.
It offers 1 : 2 Risk Reward.
All Important Supports and Resistances are drawn in chart. All levels are on closing basis.
Please have a look and revert back if you need some more study on it.
Disclaimer : Consult Your Financial Advisor Before Taking Any Decision On This Analysis.
Indian Hotels - Breaking out!!!Indian Hotels breaking out after 24 weeks consolidation.
Need to watch how the breakout above 227 sustains in the near term.
Price zone between 236 and 227 is important. This channel can act as short term consolidation area. Movement above 236 can add further momentum.
Short term target of 288.
Long term (12 months) probable target: 330.
Note: Not an advise to buy or sell, simply a personal analysis.
Indian Hotels Resistance levelNSE:INDHOTEL
After giving such a great move now stock reaching towards resistance. whoever already long in this can book profit if find reversal in PRZ and one can take new entry for short as well.
📌 To Trade on This Chart, You Should Have Reversal Trading Knowledge. As Harmonic is One Of The Best Reversal Trading Strategy, But Always Remember That Harmonic Patterns Also Can Fail (there is no holly grail In Stock Market). That's Why One Should Must Have Knowledge Of Reversal Trading To Trade On Harmonic Patterns.
📌 That Dash Line Is Called PRZ, From That Dash Line To that Horizontal Simple Line Area Is Whole PRZ(Price Reversal Zone).
******Whatever charts or levels sharing here or on any other platforms are just for educational purpose only, Not A Recommendation To Buy Or Sell. Please do your own analysis before taking any trade on them. We are not SEBI registered.
Symmetrical Triangle in Indian HotelChart -> Indian Hotel Daily
As seen per chart, a symmetrical triangle breakout has been done with good volume buildups.
CMP: 227
Targets: 277 & 310
StopLoss: 180 on weekly close basis
Disclaimer: This is for educational purpose only. This is not any recommendations. I am not SEBI registered. Please consult your financial advisor before taking any action.
Simple Trade Setup | INDIAN HOTEL | 02-03-2022 [INTRADAY]NSE:INDHOTEL
Observations:
1) On 1hr time frame, we can see formation of head and shoulder pattern.
Major support range is 191-194 level.
Below this range it can become bearish.
Please refer below chart : 1hr Time Frame.
2) On 15min time frame, we can see a broad resistance channel.
Please refer below chart : 15min Time Frame.
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Trade Setup for 02-03-2022
1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action.
2) Everything is mentioned on the chart. I hope it is easy to understand.
3) All the levels will work as support, resistance, entry and exit w.r.t price action near that level.
4) Avoid gap up or gap down chase. Wait and trade between levels.
Please refer below chart for levels.
Hope I made it easy to understand it.
Do comment your doubt or suggestion.
Note: Trade with Strict SL. It may or may not hit all the levels. So one can book profit / loss at respective level considering how price action works near that level.
LEMONTREE consolidation; Asc Triangle & Parallel ChannelLEMON Tree started consolidation move, trapped in Ascending Triangle pattern since late 2020. This consolidation broke out in Late September. Coincidentally I also found out that the stock is also following a Parallel Channel Consolidation, as visible from chart. The stock is now consolidating near upper band of this Channel. A probable breakout from this point, supported with volumes may lead this stock to scale new highs after the fall of March 2020. Stay with this trade for a target of above 60.
** I am not SEBI Registered. Kindly consult your advisor before taking trade. **
INDIAN HOTELS RETEST AND BOUNCING BACK!!!From the chart, it is evident that the stock took support at previous resistance of 191-195. After taking support at the mentioned level, it has completed retest and is moving back up. I am bullish on the stock for the next few weeks as it can give a great upside movement.
#indianhotels multiple pattern breakout weekly#indianhotels multiple pattern breakout
inverse HNS pattern breakout on weekly
previous resistance zone broken out on weekly
ascending triangle pattern breakout on weekly
momentum and trend indicators show bullishness all timeframes short medium long
breakout candle low can be stop loss and entry on retracement ideal as candle is big.
INDHOTEL: HOSPITALITY STOCKS WILL REWARD INVESTORSThis week, the stock has given a breakout with massive volumes and tested its 52-week high as well. On the technical front, this stock can be seen trading in a rising channel with the formation of the higher high and higher bottom.The price-volume action with breakout suggests the next up-move in prices. Volume build-up also looks promising. Traders can accumulate the stock in the range of Rs 160-165 for an upside target of Rs 190-210. The second COVID wave delayed the recovery in the Hospitality sector by a couple of quarters. However, the impact this time around was less severe and the recovery has been quicker.