Indian Hotels gains on buzz of exit from Moroccan hotel management deal

Indian Hotels Company rose 1.48% to Rs 99.25 at 13:05 IST on BSE on reports that the company has pulled out from managing Taj Palace Marrakech in Morocco.

Meanwhile, the S&P BSE Sensex was down 53.65 points or 0.2% at 27,003.76.

On BSE, so far 68,000 shares were traded in the counter as against average daily volume of 3.38 lakh shares in the past one quarter.

The stock hit a high of Rs 100.50 and a low of Rs 97.50 so far during the day. The stock had hit a 52-week high of Rs 111.60 on 25 June 2014. The stock had hit a 52-week low of Rs 45.15 on 24 September 2013.

The stock had outperformed the market over the past one month till 10 September 2014, advancing 14.05% compared with Sensex's 6.82% rise. The scrip had, however, underperformed the market in past one quarter, declining 2.2% as against Sensex's 5.76% rise.

The mid-cap company has equity capital of Rs 80.75 crore. Face value per share is Re 1.

In May 2011, Indian Hotels Company (IHCL) signed the contract with JK Hotels, a private Moroccan company (hotel owner) to manage the luxury hotel in Marrakech. Subsequently, Taj Palace Marrakech was launched in July 2013 under a management contract with JK Hotels.

IHCL reported a consolidated net loss of Rs 34.82 crore in Q1 June 2014, higher than net loss of Rs 19.09 crore in Q1 June 2013. Net sales rose 3.2% to Rs 937.46 crore in Q1 June 2014 over Q1 June 2013.

Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces.

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