Advani Hotels soars ahead of stake sale

Advani Hotels & Resorts (India) was locked at upper limit of 5% at Rs 62.65 at 11:36 IST on BSE after textile accessories maker Arrow Webtex announced plans to acquire 20% in the hotel firm.

Meanwhile, the BSE Sensex was down 70.63 points, or 0.40%, to 17,755.36, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 9370 shares of the scrip were traded. The stock had an average daily volume of 61,236 shares on BSE in past one quarter.

The stock had hit a 52-week high of Rs 106 on 20 December 2007 and a 52-week low of Rs 29.65 on 7 March 2007.

The scrip had underperformed the market in the one month to 27 February 2008, falling 11.09% as against the Sensex's 1.47% decline. It had also underperformed the market in the past three months, sliding 28.07% against the Sensex's 6.20% slide.

The small-cap hotel firm has an equity capital of Rs 9.24 crore. Face value per share is Rs 2.

At the current price of Rs 62.65, the scrip trades at a PE multiple of 49.33, based on Q3 December 2007 annualised EPS of Rs 1.27.

Textile accessory maker Arrow Webtex said on Wednesday, 27 February 2008 its subsidiary, Fasttrack Impex would make an announcement on 29 February 2008 for acquiring 20% of the capital of Advani Hotels & Resorts.

Meanwhile, shares of Arrow Webtex was down 2.26% to Rs 60.55

The net profit of Advani Hotels & Resorts fell 20.1% to Rs 1.47 crore on 16.4% rise in sales to Rs 13.38 crore in Q3 December 2007 over Q3 December 2006.

The company operates hotel and resort in Goa, India. The firm operates in two segments namely hotel and casino operation. The hotel offers banquet halls, restaurants, swimming pools, golf and health clubs, sports, amusement and meditation centers.