NSEI:ROHLTD

Stock Analysis Report

Executive Summary

Royal Orchid Hotels Limited operates and manages hotels and resorts in India.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Royal Orchid Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.0%

ROHLTD

0.2%

IN Hospitality

1.6%

IN Market


1 Year Return

-35.2%

ROHLTD

-7.3%

IN Hospitality

0.8%

IN Market

Return vs Industry: ROHLTD underperformed the Indian Hospitality industry which returned -7.3% over the past year.

Return vs Market: ROHLTD underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

ROHLTDIndustryMarket
7 Day-5.0%0.2%1.6%
30 Day3.0%3.3%1.5%
90 Day-13.1%-6.2%-3.3%
1 Year-33.5%-35.2%-7.0%-7.3%2.7%0.8%
3 Year21.1%15.3%18.4%15.2%22.0%16.0%
5 Year81.4%72.8%50.8%45.8%42.3%29.3%

Price Volatility Vs. Market

How volatile is Royal Orchid Hotels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Royal Orchid Hotels undervalued compared to its fair value and its price relative to the market?

50.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ROHLTD (₹76.45) is trading below our estimate of fair value (₹152.87)

Significantly Undervalued: ROHLTD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ROHLTD is good value based on its PE Ratio (18.4x) compared to the Hospitality industry average (19.9x).

PE vs Market: ROHLTD is poor value based on its PE Ratio (18.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ROHLTD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ROHLTD is overvalued based on its PB Ratio (1.2x) compared to the IN Hospitality industry average (1.1x).


Next Steps

Future Growth

How is Royal Orchid Hotels forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROHLTD's forecast earnings growth (9.3% per year) is above the savings rate (7.6%).

Earnings vs Market: ROHLTD's earnings (9.3% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: ROHLTD's earnings are forecast to grow, but not significantly.

Revenue vs Market: ROHLTD's revenue (10.9% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: ROHLTD's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ROHLTD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Royal Orchid Hotels performed over the past 5 years?

-1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ROHLTD's earnings have declined by -1.6% per year over the past 5 years.

Accelerating Growth: ROHLTD's earnings growth over the past year (118.4%) exceeds its 5-year average (-1.6% per year).

Earnings vs Industry: ROHLTD earnings growth over the past year (118.4%) exceeded the Hospitality industry 20.6%.


Return on Equity

High ROE: ROHLTD's Return on Equity (5.4%) is considered low.


Return on Assets

ROA vs Industry: ROHLTD has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: ROHLTD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Royal Orchid Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: ROHLTD's short term assets (₹727.2M) do not cover its short term liabilities (₹873.9M)

Long Term Liabilities: ROHLTD's short term assets (727.2M) do not cover its long term liabilities (944.8M)


Debt to Equity History and Analysis

Debt Level: ROHLTD's debt to equity ratio (41.2%) is considered high

Reducing Debt: ROHLTD's debt to equity ratio has reduced from 64.9% to 41.2% over the past 5 years.

Debt Coverage: ROHLTD's debt is well covered by operating cash flow (44.6%).

Interest Coverage: ROHLTD's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: ROHLTD has a high level of physical assets or inventory.

Debt Coverage by Assets: ROHLTD's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Royal Orchid Hotels's current dividend yield, its reliability and sustainability?

2.61%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ROHLTD's dividend (2.61%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: ROHLTD's dividend (2.61%) is in the top 25% of dividend payers in the Indian market (2.49%)

Stable Dividend: ROHLTD's dividend payments have been volatile in the past 10 years.

Growing Dividend: ROHLTD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.1%), ROHLTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Royal Orchid Hotels's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Chander Baljee (68yo)

33.8yrs

Tenure

₹20,865,000

Compensation

Mr. Chander Kamal Baljee has been the Managing Director of Royal Orchid Hotels Limited since January 3, 1986 and has been its Director since January 3, 1986. He served as Chairman of Royal Orchid Hotels Li ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Chander's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Chander's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.0yrs

Average Tenure

Experienced Management: ROHLTD's management team is considered experienced (4 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ROHLTD's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: ROHLTD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,398,96430 Sep 19
Chander Baljee
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares20,028
Max Price₹80.05

Ownership Breakdown


Management Team

  • Chander Baljee (68yo)

    MD & Director

    • Tenure: 33.8yrs
    • Compensation: ₹20.87m
  • Ranabir Sanyal (34yo)

    Company Secretary & Compliance Officer

    • Tenure: 3.2yrs
    • Compensation: ₹2.03m
  • Amit Jaiswal

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: ₹6.76m
  • Chirag Talwar

    Director of Corporate Marketing

    • Tenure: 0.5yrs
  • Snehanshu Banerjee

    Head of Revenue Management & EMC

    • Tenure: 0yrs

Board Members

  • Sunil Sikka (61yo)

    Non-Executive Director

    • Tenure: 19.1yrs
    • Compensation: ₹461.51k
  • Sunita Baljee (65yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₹439.51k
  • Chander Baljee (68yo)

    MD & Director

    • Tenure: 33.8yrs
    • Compensation: ₹20.87m
  • Lilian Paul (49yo)

    Non-executive & Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹725.51k
  • Vivek Mansingh (63yo)

    Non-executive & Independent Director

    • Tenure: 3.2yrs
    • Compensation: ₹659.51k
  • Naveen Jain (61yo)

    Non-executive & Independent Director

    • Tenure: 3yrs
    • Compensation: ₹791.51k

Company Information

Royal Orchid Hotels Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Orchid Hotels Limited
  • Ticker: ROHLTD
  • Exchange: NSEI
  • Founded: 1973
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹2.043b
  • Shares outstanding: 27.43m
  • Website: https://www.royalorchidhotels.com

Number of Employees


Location

  • Royal Orchid Hotels Limited
  • No. 1, Golf Avenue
  • Adjoining KGA Golf Course
  • Bengaluru
  • Karnataka
  • 560008
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532699BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2006
ROHLTDNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2006

Biography

Royal Orchid Hotels Limited operates and manages hotels and resorts in India. It operates approximately 53 hotels with 3600 rooms. The company was formerly known as Universal Resorts Limited and changed it ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:44
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.