Pulled out these number from the equityresearchindia website. Pretty depressing economics ….guess one can make money on one can catch the inflexion point when the economy is turning and the hotel industry is poised to do well …

2005 2004 2003 2002 2001 2000 1999
A) Return on Equity (i x ii) 9.20% 4.40% 3.20% 4.40% 8.90% 9.50% 11.90%
i) Return on Total Assets
4.70% 2.10% 1.60% 2.40% 5.20% 5.90% 7.90%
ii) Total Assets To Total Equity
2 2.1 2 1.8 1.7 1.6 1.5
B) Return on Total Assets (iii x iv) 4.70% 2.10% 1.60% 2.40% 5.20% 5.90% 7.90%
iii) Net Profit Margin
11.10% 6.60% 5.60% 8.20% 13.90% 15.40% 17.20%
iv) Total Assets Turnover
0.4 0.3 0.3 0.3 0.4 0.4 0.5
C) Total Assets Turnover (v / vi) 0.4 0.3 0.3 0.3 0.4 0.4 0.5
v) Total Income (Rs. Cr.)
3103 2452 2052 1924 2241 2012 2078
vi) Average Total Assets (Rs. Cr.)
7374 7597 7023 6577 5959 5260 4495

2 Comments

  1. s bali says:

    While PE (cyclically adjusted) is one way of valuing these, another is the P/BV since these are heavily property-based stocks. eg Asian Hotels property in Delhi is worth 1800 cr while its Mcal is 600Cr.

  2. admin says:

    Hi sbali
    i generally prefer not to value stocks the above way. if the capital value of an asset is this high, then the cash flow should represent that ? i have not seen the details of asian hotels ..but i would assume that they should get a cash flow of 150 crs or higher per annum ?

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