Analysts' pick: Kamat Hotels
Sharekhan has initiated coverage on Kamat Hotels and has advised investors to maintain a 'cautious' view on the stock.
Kamat Hotels
CMP: Rs 114.60
Target Price: NA
Sharekhan has initiated coverage on Kamat Hotels and has advised investors to maintain a ���cautious��� view on the stock. Though the stock is attractively priced, the inability of the hotel group to fund its expansion plans is a key potential risk to the earnings estimate for FY10, the research note said.
���The company���s revenues are heavily dependent on two properties ��� The Orchid and VITS ��� in Mumbai. These two properties are like to face stiff competition with incremental supply of rooms from Sahara Star. We believe, the occupancy rate of these properties may remain suppressed due to economic slowdown,��� the Sharekhan report added.
According to Sharekhan, the hotel group���s growth would be driven by a 37% rise in its room inventory to 773 rooms by FY10. Also, an increase in properties under management contracts will contribute to the topline growth.
CMP: Rs 114.60
Target Price: NA
Sharekhan has initiated coverage on Kamat Hotels and has advised investors to maintain a ���cautious��� view on the stock. Though the stock is attractively priced, the inability of the hotel group to fund its expansion plans is a key potential risk to the earnings estimate for FY10, the research note said.
���The company���s revenues are heavily dependent on two properties ��� The Orchid and VITS ��� in Mumbai. These two properties are like to face stiff competition with incremental supply of rooms from Sahara Star. We believe, the occupancy rate of these properties may remain suppressed due to economic slowdown,��� the Sharekhan report added.
According to Sharekhan, the hotel group���s growth would be driven by a 37% rise in its room inventory to 773 rooms by FY10. Also, an increase in properties under management contracts will contribute to the topline growth.
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