Royal Orchid Hotels strengthens

Royal Orchid Hotels strengthens

Royal Orchid Hotels gained 1.53% to Rs 116.50 at 10:57 IST on BSE, after the company said it has formed a joint venture with Parsvnath Hotels, a wholly-owned subsidiary of Delhi based real estate developer Parsvnath Developers.

The company made this announcement during market hours today, 20 February 2008.

Meanwhile, BSE Sensex was down 350.91 points or 1.94% to 17,724.75, on weak cues from the global markets.

On BSE, 8,291 shares were traded in the counter. The scrip had an average daily volume of 37,567 shares in the past one quarter.

The stock hit a high of Rs 118 and a low of Rs 116 so far during the day. The stock had a 52-week high of Rs 225 on 11 June 2007 and a 52-week low of Rs 100 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 19 February 2008, declining 7.61% compared to the Sensex’s return of 2.67%. It had also underperformed the market in the past one quarter, declining 13.98% compared to Sensex’s decline of 2.83%.

The company’s current equity is Rs 27.23 crore. Face value per share is Rs 10.

The current price of Rs 116.50 discounts its Q3 December 2007 annualized EPS of Rs 11.59, by a PE multiple of 10.05.

The joint venture (JV) will develop 10 hotels at an investment of Rs 500 crore. Parsvnath Hotels will hold the majority stake in the JV. The JV is named as Parsvnath Royal Orchid Hotels.

Royal Orchid Hotels’ net profit declined 7.3% to Rs 7.89 crore on 6.8% growth in net sales to Rs 21.61 crore in Q3 December 2007 over Q3 December 2006.

The company's principal activity is operation of hotels in India.