Buy Hotel Leela
HOTEL LEELA [CMP 44.60] Hotel Leela is one of leading hotel player with premium properties in liesure as well as business segments. Right now it operates hotels in Bangalore, Mumbai, Goa and Kovalam with total room capacity of 1086 rooms. Not only average room rents are rising, the uses of Food and Beverages business is also rising; leading to better revenue from both the segments. In Q-1, the performance of the company as well as industry suffered due to a sharp spike in RUPEE, leading to dent in margins, but we think is short term in nature. Industry is taking corrective steps by - Quoting rupee Tarriffsor readjusting the Dollar tarriffs, which will protect its margins. Further, looking to strong demand, industry as well as company has raised the Tarriff rates for room for coming season [Oct.’07 onwards] by 15-20%. This will boost the revenue and profits in second half, which is prime revenue earner period for the industry. We expect the company to report EPS close to Rs 3.90 for FY 08, and expect the market to discount it by at least 15 times. This gives us a target of Rs around Rs60 in medium term. BUY with short term target of Rs 52 and medium term target of Rs 62.
Regards
Communication Manager Retail Research _____________________________________________________________________
Anand Rathi Securities Ltd., 3rd Floor,Victoria House, Kamala Mills Compound, Opp. Bombay Dyeing Mills Gate, Lower Parel, Mumbai - 400 013, India
On 9/10/07, Sushanta Mitra wrote: > > On what basis? I am holding some quantity @48. Please share. > > Sushanta > > > > > >
