Multibagger Chalet Hotels share price declines 5% since Q4 results. Should you Buy, Sell or Hold?

Multibagger Chalet Hotels share price declines 5% since Q4 results. Should you Buy, Sell or Hold?
Multibagger Chalet Hotels share price declines 5% since Q4 results. Should you Buy, Sell or Hold?

Stock Market Today: Multibagger Chalet Hotels share price declined more than 5% during morning trades to lows of close to 741 on Wednesday. Although some recovery took place by afternoon, the Chalet Hotels share price, is down around 5% since its Q4 results on 13th May and more than 10% in a week. Notably the chalet Hotel share price had almost doubled in a year until 11th May and more than doubled to 52-week and all time highs of 959 seen in March’2024.

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As per the Q4 results, Chalet hotels had seen their net profit at 82.4 Crore more than double from 36.6 core in the year ago quarter. The net profit also improved 17% sequentially.

The hotels stocks have been benefiting from rising occupancy, rising room rates leading to better per room revenues and also expansions.

The operating parameters remained strong for Chalet Hotel, with Occupancy at 76% rising over 71% in the previous quarter and 74% in the year ago quarter. The average daily rate of Chalet Hotel also improved 5% year-on-year to Rs. 11,862. The revenue per aviable room or RevPAR at 8,984 thereby grew 7% year-on-year and 15% sequentially.

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Not surprising Chalet Hotel total revenues at 424.4 crore grew 23% year-on-year and 12% sequentially. The earnings before interest tax depreciation and amortization also grew 24% year-on-year to 183.2 crore

Analyst maintain positive outlook for the stock. Those at Kotak Institutional Equities said that 4QFY24 was steady, with 20% year-on-year growth in Ebitda, aided by key additions and occupancy improvement (200 bps), even as the blended Average Room Rate (ARR) growth was modest at 5 % yoy, although growth was better at 8% yar on year on a same-store basis. Chalet will likely continue to deliver strong earnings due to the addition of 865 hotel keys and 0.9 million square feet of annuity area by FY2027.

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Analysts as those at Emkay Global Financial Services believe expansion projects will aid growth. Also rates and occupancies will grow further. They expect Chalet to post revenue, Ebitda improve at CAGR (compound annual growth rate) of 23% and 31% respectively over FY24-26. The benefits related to Airoli and Delhi International Airport projects are expected only from FY27. Looking at this they have adjusted FY25 and FY26 Ebitda lower by 1.6% and 4.2%, on margin miss

Disclaimer: The views and recommendations made above are those of individual analysts or brokering companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions

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