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: 32.30 February 11, 2016 Stock Details BSE code 526558 BSE ID JAMEHOT Face value ( ) 10 No of shares (m) 8.0 52 week H/L 65.9/29.4 Market cap ( m) 258.4 30 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 2013. Financial Performance revenues for FY 15 fell 8.2% to 206.3 million compared to 224.8 million in the previous year. The company has reported a net loss of 206.33 million in FY 15, compared to the loss of 101.3 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) 0.1 179.6 224.8 46.6 44.8 YoY Growth (%) NA NM 25.1% -6.9% -3.7% Relative Chart EBITDA ( m) -0.1 49.0 67.2 10.63 11.74 70 James Hotels Limited Sensex 30,000 EBITDA Margin -193.3% 27.3% 29.9% 22.8% 26.2% PAT ( m) (0.9) (15.1) (101.3) -53.6-56.4 60 50 40 30 20 10 29,000 28,000 27,000 26,000 25,000 24,000 23,000 EPS ( ) (0.11) (1.88) (12.66) -6.70-5.47 YoY Growth (%) NA -1609.1% -573.4% -157.7% -18.4% Source: Company, Karvy Investment Advisory 0 22,000 Source: Bloomberg 1
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
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 2013. 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) 32.3 258.4 206.3 26.5% -29.1 NM Indian Hotels Co.Ltd 107.1 86,44 20,243.8 10.3% -1.0 NM Royale Manor Hotels & Industries Ltd. 13.2 212.1 242.4 28.5% 1.4 11.5 Source: BSE 3
Financial Analysis For the period ending 31 March, 2015, reported revenues of 206.3 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 0.1 179.6 224.8 % growth NA NM 25.1% EBITDA -0.1 49.0 67.2 % EBITDA margin -193.3% 27.3% 29.9% Depreciation and amortisation 0.8 49.1 95.9 EBIT (0.9) (0.1) (28.7) Interest - 15.0 72.6 PBT (0.9) (15.1) (101.3) Tax (credit) expense - - - Net profit (0.9) (15.1) (101.3) % growth net profit NA -1634.1% -571.7% Balance sheet ( million) Shareholder fund 241.92 226.84 125.58 Long term liabilities 714.12 869.98 896.41 Current liabilities 116.23 75.01 135.72 Fixed assets 1,013.06 1,483.52 1,483.06 Current assets 26.76 50.63 45.34 Cash & cash equivalents 25.08 24.75 21.54 Cash flow statement Cash flow operations (18.3) 92.8 NA Cash flow from investing (119.7) (95.3) NA Cash flow from financing 141.8 (2.4) NA Per share data EPS ( ) (0.1) (1.9) (12.7) CEPS ( ) () 4.3 (0.7) DPS ( ) - - - BVPS ( ) 30.61 28.29 15.70 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 0.2 0.7 0.3 Cash ratio 0.22 0.33 0.16 Source: Company, Karvy Investment Advisory 4
Financial Snapshot Revenue growth (%) EBITDA margin (%) 25 20 15 10 5 35000% 30000% 25000% 20000% 15000% 10000% 5000% % 8 6 4 2-2 5% % -5% -10% -15% -20% -25% Revenue ( m) % growth EBITDA ( m) % EBITDA margin Net Profit Margin (%) BVS & EPS -5-10 -15 % -50% -100% -150% -200% 35.0 3 25.0 2 15.0 1 5.0-2.0-4.0-6.0-8.0-1 -12.0-14.0 Net Profit ( m) % net profit margin Book value per share ( ) EPS diluted ( ) Liquidity ratios Profitability ratios 0.80 0.60 0.40 0.20 0 0.35 0.30 0.25 0.20 0.15 0.10 5 0 % -2% -4% -6% -8% Current ratio Cash ratio ROE ROCE Source: Karvy Investment Advisory 5
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