Kamat Hotels (India) shares hit 20% upper circuit on bourses; reasons here

Kamat Hotels (India) shares were buzzing in trade in otherwise weak markets on Monday, February 3, 2025. The company's share price climbed as much as 19.98 per cent to get locked at the upper circuit of Rs 272.55 apiece on the BSE during the intra-day trade. A combined total of nearly 0.83 million equity shares of the company, estimated to be worth around Rs 98.54 crore, exchanged hands on the BSE and NSE.

 

The northward move follows the company’s announcement of its financial results for the third quarter of the financial year 2024-25 (Q3FY25).

 

In an exchange filing, Kamat Hotels (India) said that during the quarter, its revenue rose 28.8 per cent year-on-year (Y-o-Y) to Rs 110.9 crore from Rs 86.1 crore reported in Q3FY24. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 71.6 per cent Y-o-Y to Rs 45.65 crore, up from Rs 26.60 crore in Q3FY24.  During the quarter, profit after tax (PAT) attributable to the owner of the parent, however, ahs dropped 37.02 per cent Y-o-Y to Rs 26.18 crore, compared to Rs 41.57 crore in the corresponding quarter of the previous fiscal year. Meanwhile, the company's total expenses declined 1.2 per cent Y-o-Y to Rs 77.26 crore in Q3FY25, down from Rs 78.2 crore.

 

 

In addition to the results, the company also announced that its Board of Directors, in its meeting held today, has approved the acquisition of 10,000 equity shares of face value Rs 10 each of Chandi Hospitality Private Limited (CHPL) from its existing shareholders, representing 100 per cent of CHPL’s equity share capital.

 

Meanwhile, investor sentiment was also boosted after Union Finance Minister Nirmala Sitharaman, in her Budget speech on Saturday, February 1, 2025, outlined a comprehensive plan to develop India’s top 50 tourist destinations in collaboration with state governments through a "challenge mode."

 

Incorporated in 1986, Kamat Hotels (India) (KHIL) operates in various segments, ranging from luxury to value-for-money categories across India. The company has a diverse brand portfolio, including premium brands like The Orchid, Fort JadhavGadh, and Mahodadhi Palace, as well as mid-premium brands like Lotus Resorts and IRA by Orchid. It primarily expands its presence through lease properties, revenue-sharing agreements, and management contracts.

 

Kamat Hotels (India) has a market capitalisation of Rs 803.48 crore. The company's shares have yielded a return of 14 per cent in the last one month and 22.96 per cent in the last six months. However, its share price has declined by 16 per cent over the past year.

 

Shares of Kamat Hotels (India) have a 52-week range of Rs 335.85-176 on the BSE.