Microcap stock jumps 5% after expanding its business in Goa and Gujarat

During Monday’s trading session, the shares of one of India’s fastest-growing hotel chains jumped nearly 5.5 percent to Rs. 380.3 on BSE, after the company announced expanding its presence in Goa and Gujarat. 

With a market cap of Rs. 1,001 crores, at 11:26 a.m., the shares of Royal Orchid Hotels Limited were trading in the green at Rs. 368.25, up by around 2.2 percent, as against its previous closing price of Rs. 360.55. 

What’s the news: 

Royal Orchid Hotels Limited (ROHL), as per its latest regulatory filings with the stock exchanges, has expanded its Regenta brand in Goa with the signing of two new properties. 

The addition of Regenta Baywatch Resort and Regenta Beach House highlights the company’s commitment to enhancing Goa’s tourism landscape with a diverse portfolio of brands. 

In addition, the company has further strengthened its presence in Gujarat with the launch of Regenta Dwarka. With the addition of this new hotel, ROHL will be clocking a total of 13 hotels across its brands in Gujarat. 

Located just five minutes from the Dwarkadish Temple, Regenta Dwarka features 52 well-appointed rooms and suites, combining modern amenities with understated elegance to provide a seamless experience for guests. 

Financials: 

Royal Orchid Hotels reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 12 percent, from Rs. 70 crores in Q2 FY24 to Rs. 78.3 crores in Q2 FY25. 

In contrast, its net profit decreased during the same period from Rs. 7.5 crores to Rs. 6.8 crores, representing a marginal decline of nearly 9.3 percent YoY. 

EBITDA for Q2 FY25 increased by about 19.4 percent YoY to Rs. 19.4 crores, up from Rs. 18.94 crores in Q2 FY24. 

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Key Financial Ratios: 

In terms of key financial metrics, Royal Orchid Hotels has a Return on Equity (RoE) of 26.7 percent and a return on capital employed (RoCE) of 19.8 percent. Additionally, the company’s debt-to-equity ratio stands at 1.02. Stock Performance: 

The stock has delivered positive returns of nearly 5.3 percent in one year, while around 1.2 percent of negative returns in the last six months. So far in 2024, the shares of Royal Orchid Hotels have given positive returns of about 15 percent. 

About the company: 

Royal Orchid Hotels Limited was incorporated in 1986 under the name of Universal Resorts Limited, engaged in the business of operating and managing hotels/resorts and providing related services, through its portfolio of hotel properties across the country. 

The company manages hotels under flagship brands – Royal Orchid, Royal Orchid Central, Royal Orchid Suites, Regenta Central, Regenta Resort, Regenta Place & Regenta Inn. 

Written by Shivani Singh 

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