Company Overview. Financial Performance

Transcription

1 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 Jan/16 CMP: February 11, 2016 Stock Details BSE code BSE ID JAMEHOT Face value ( ) 10 No of shares (m) week H/L 65.9/29.4 Market cap ( m) days avg vol (No) 40 Free float ( m) 124 Stock performance (%) 1M 3M 12M Absolute -33.9% 3.4% -16.1% Rel. to Sensex 27.1% 14.5% 4.1% Shareholding Pattern* (%) Promoters FIIs DIIs Others 52.3% % % 47.6% *As of September 2015 Company Overview is engaged in operating restaurant & banquet business. Industry Overview The Indian travel and tourism industry comprises of both domestic (85% of the market) and international inbound travel (15%). The industry is estimated to grow at a CAGR of 12% to $27.5 bn in 2016 from $19.7 bn in Financial Performance revenues for FY 15 fell 8.2% to million compared to million in the previous year. The company has reported a net loss of million in FY 15, compared to the loss of million in FY 14. On Q-o-Q basis revenues have declined 3.7% to 44.8 million in Q2 16 from 46.6 million in Q2 15. Table1: Key Financials (Y/e March) 2Q FY15 2Q FY 16 Sales ( m) YoY Growth (%) NA NM 25.1% -6.9% -3.7% Relative Chart EBITDA ( m) James Hotels Limited Sensex 30,000 EBITDA Margin % 27.3% 29.9% 22.8% 26.2% PAT ( m) (0.9) (15.1) (101.3) ,000 28,000 27,000 26,000 25,000 24,000 23,000 EPS ( ) (0.11) (1.88) (12.66) YoY Growth (%) NA % % % -18.4% Source: Company, Karvy Investment Advisory 0 22,000 Source: Bloomberg 1

2 Background and Business Description. was incorporated on 25 August in the name of Mehfil Restaurants & Hotels Pvt. Ltd. Name of the company was changed from Mehfil Restaurants & Hotels Pvt. Ltd to. on 20th March. The company is engaged in operating restaurant & banquet business. Key Strengths Good industrial relations Risks & Concerns Intense competition Board of s Table 2: Composition of Board Name Mr. Haravtar Singh Arora Mr. Ajit Pal Singh Mr. Neeraj Mahindroo Mr. Daljit Singh Sidhu Mr. Amit Julka Mr. Amardeep Singh Brar Source: Company Relation with Company Chairman cum Managing 2

3 Industry Overview The travel and tourism industry in India comprises both domestic (85% of the market) and international inbound travel (15%). The industry is estimated to grow at a CAGR of 12% to $27.5 bn in 2016 from $19.7 bn in Within the domestic travel and tourism industry, the online travel segment has significantly grown over the past few years. The online travel market in India, estimated at $9.1 bn (2014), comprised air travel ($5.1 bn), rail travel ($3.1 bn), hotels ($0.8 bn), and others ($0.1 bn). Online penetration in travel and tourism bookings is estimated to increase from 41% in 2014 to 46% in 2017, according to Phocuswright, a leading travel data aggregator. Following factors to drive growth for traveling industry: Increase in purchasing power of the middle class Increase in the number of Internet and smart phones users, coupled with increasing e-commerce penetration Better connectivity between cities and travelling destinations Evolving and improving lifestyles Competition analysis Company CMP ( ) Mcap ( m) Rev ( m) OPM (%) EPS ( ) PE (x) % NM Indian Hotels Co.Ltd ,44 20, % -1.0 NM Royale Manor Hotels & Industries Ltd % Source: BSE 3

4 Financial Analysis For the period ending 31 March, 2015, reported revenues of million, representing 8.2% decline when compared to the revenues in FY 14. The company s EBITDA stood at 54.7 million in FY 15 and its EBITDA margin deteriorated 340 bps to 26.5% from being 29.9% in FY 14 due to lower revenue. Year end March Income statement ( million) Revenue % growth NA NM 25.1% EBITDA % EBITDA margin % 27.3% 29.9% Depreciation and amortisation EBIT (0.9) (0.1) (28.7) Interest PBT (0.9) (15.1) (101.3) Tax (credit) expense Net profit (0.9) (15.1) (101.3) % growth net profit NA % % Balance sheet ( million) Shareholder fund Long term liabilities Current liabilities Fixed assets 1, , , Current assets Cash & cash equivalents Cash flow statement Cash flow operations (18.3) 92.8 NA Cash flow from investing (119.7) (95.3) NA Cash flow from financing (2.4) NA Per share data EPS ( ) (0.1) (1.9) (12.7) CEPS ( ) () 4.3 (0.7) DPS ( ) BVPS ( ) Financial Ratios % ROE -0.4% -6.4% -57.5% ROCE -0.1% % -2.8% Debt/Equity 293.1% 381.2% 709.6% Interest coverage ratio NM NM NM Current ratio Cash ratio Source: Company, Karvy Investment Advisory 4

5 Financial Snapshot Revenue growth (%) EBITDA margin (%) % 30000% 25000% 20000% 15000% 10000% 5000% % % % -5% -10% -15% -20% -25% Revenue ( m) % growth EBITDA ( m) % EBITDA margin Net Profit Margin (%) BVS & EPS % -50% -100% -150% -200% Net Profit ( m) % net profit margin Book value per share ( ) EPS diluted ( ) Liquidity ratios Profitability ratios % -2% -4% -6% -8% Current ratio Cash ratio ROE ROCE Source: Karvy Investment Advisory 5

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