Chalet Hotels Soars from Rs 99 to Rs 500: An Astounding Leap in Stock Performance

The shares of Chalet Hotels Limited experienced a sharp rise today. The stock opened at Rs 477.55, which is a flat opening from the previous day’s closing price of Rs 478.90. During the intraday session, the stock surged by 6.8% with significant trading volume. Finally, the stock concluded the session at Rs 508 each on the BSE.

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 3.11 times in volumes than its normal trading volumes on the BSE.

The stock’s 52-week highs and lows are recorded at Rs 511 and Rs 304, respectively and has a market capitalization of Rs 10440 crore.

The stock has displayed remarkable performance, delivering a 30% return in a month and an impressive 200% return in just two years. Furthermore, the stock has generated a multibagger return of 297% in the last three years.

The company’s shares made their debut on February 7, 2019, at a price of Rs 291 each on the BSE. During the COVID-19 outbreak, the stocks of all hotel companies, including Chalet Hotels, experienced a significant decline. Chalet Hotels’ stock hit an all-time low price of Rs 99 in May 2020. Since then, the stock has climbed to Rs 500 as of today. This journey from the all-time low to the all-time high price took 1,174 days or 3 years.

Additionally, the stock has generated an impressive return of 410% from its all-time low price registered in May 2020.

Financial Performance

In the June quarter results the revenue from operations experienced a substantial increase of 23% YoY, going from Rs 253 crore to Rs 353 crore. The operating profit of the company increased from Rs 102 crore to Rs 110 crore. The net profit of the company amounts to Rs 89 crore, the net profit margins stood at 28.6% in FY23.

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 9.2% and 9.7%, respectively. The Book value of the company is Rs 75, whereas the Price to book value is 6.8 times. Furthermore, the price-to-earnings ratio is 49.5 times.

Business Overview

Chalet Hotels Limited operates as an India-based entity engaged in the ownership, development, management, and operation of upscale hotels, including serviced residences. These establishments are situated within the Mumbai metropolitan region, as well as in Hyderabad, Bengaluru, and Pune.

The company’s diverse portfolio encompasses seven fully functional hotels spanning mainstream and luxury segments. Additionally, it manages commercial and retail spaces in proximity to its hospitality assets. Among its notable properties are JW Marriott Mumbai Sahar, Renaissance Mumbai Convention Centre Hotel, and so on.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.