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Business News/ Markets / Stock Markets/  Multibagger Chalet Hotels share price declines 5% since Q4 results. Should you Buy, Sell or Hold?

Multibagger Chalet Hotels share price declines 5% since Q4 results. Should you Buy, Sell or Hold?

Stock Market Today: Multibagger Chalet Hotels share price trades volatile. While it corrected more than 5% during intraday trades on Wednesday , some recovery took place by afternoon. Nevertheless stock is still down around 5% post Q4 results on 13 May and more than 10% in a week. Sell or Hold?

Chalet Hotel share price declines 5% since Q4 resultsPremium
Chalet Hotel share price declines 5% since Q4 results

Stock Market Today: Multibagger Chalet Hotels share price declined more than 5% during morning trades to lows of close to 741 on Wednesday. Though some recovery took place by afternoon, the Chalet Hotels share price, is down around 5% since its Q4 results on 13th May and more than 10% in a week. Notably the chalet Hotel share price had almost doubled in a year till 11th May and more than doubled to 52-week and all time highs of 959 seen in March'2024. 

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As per the Q4 results, Chalet hotels had seen its net profit at 82.4 Crore more than double from 36.6 core in the year ago quarter. The net profit also improved 17% sequentially.

The hotels stocks have been benefiting from rising occupancy, rising room rates leading to better per room revenues and also expansions.

The operating parameters remained strong for Chalet Hotel, with Occupancy at 76% rising over 71% in the previous quarter and 74% in the year ago quarter. The average daily rate of Chalet Hotel also improved 5% year-on-year to Rs. 11,862. The revenue per avialable room or RevPAR at 8,984 thereby grew 7% year-on-year and 15% sequentially. 

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Not surprising Chalet Hotel total revenues at 424.4 crore grew 23% year-on-year and 12% sequentially.  The earnings before interest tax depreciation and amortisation also grew 24% year-on-year to 183.2 crore 

Analyst maintain positive outlook for the stock . Those at Kotak Institutional Equities said that 4QFY24 was steady, with 20% year-on-year growth in Ebitda, aided by key additions and occupancy improvement (200 bps), even as the blended Average Room Rate (ARR) growth was modest at 5% yoy, although growth was better at 8% yar on year on a same-store basis. Chalet will likely continue to deliver strong earnings due to the addition of 865 hotel keys and 0.9 million square feet of annuity area by FY2027.

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Analysts as those at Emkay Global Financial Services believe expansion projects will aid growth. Also rates and occupancies will  grow further. They expect Chalet to post revenue, Ebitda improve at CAGR (compound annual growth rate)  of 23% and 31% respectively over FY24-26. The benefits related to Airoli and Delhi International Airport projects are expected only from FY27. Looking at this they have adjusted FY25 and FY26 Ebitda  lower by 1.6% and 4.2%, on margin miss

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions




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Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 15 May 2024, 12:49 PM IST
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