NEW DELHI: Shares of Chalet Hotels fell 3 per cent in Thursdays trade after MSCI excluded the hospitality stock from its India Domestic Small Cap Index.The stock fell 2.79 per cent to hit a low of Rs 345.80 on BSE.
The company has reported in-line results for the December quarter.K Raheja Corp group companys profit after tax grew 134 per cent to Rs 33.3 crore from Rs 14.1 crore in the corresponding quarter of the previous year.Nirmal Bang Institutional Equities has retained its accumulate rating on the stock.
The brokerage values the stock at 20 times September FY22 EV/EBITDA for the Hospitality segment to arrive at a target of Rs 324, which is less than Thursdays traded price.
The management highlighted that banqueting and MICE segments continue to struggle.
Retail and Commercial segment revenue grew by 117 per cent YoY, though on a low base.
Growth in retail and commercial revenue was driven by the opening of 17 new outlets in Orb Sahar and the Sahar Office tower, achieving 90 per cent and completing the fit outs, the brokerage said.Revenue per available room for the hospitality firm increased 9.9 per cent to Rs 6,863 in December quarter from Rs 6,245 in the year-ago quarter last year.
The company said its average daily rate for the quarter stood at Rs 9,201, higher by 8.9 per cent from the same quarter last year while occupancy for the quarter was at 74.6 per cent as compared to 73.9 per cent in the same quarter of the previous year.