TajGVK Hotels Shares Surge 9% After 76% Profit Jump in Q2

TajGVK Hotels & Resorts Limited saw its shares jump 9.5% to Rs 335.85 per piece during intraday trading on the BSE on Monday.

TajGVK Hotels Shares Surge 9% After 76% Profit Jump in Q2

TajGVK Hotels & Resorts Limited witnessed an intraday 9.5% jump in the shares to Rs 335.85 per piece on Monday on the BSE following the healthy Q2 FY2024-25 results of the company, revealing significant profit and revenue growth.

Metric Q2FY25 Q2FY24 Q1FY25
Net Profit (Rs crore) 19.65 11.13 12.71
Revenue from Operations (Rs crore) 105.17 89.42 92.81
Profit Growth (Y-o-Y) 76.55% - -
Profit Growth (Sequential) 54.6% - -
Ebitda Margin 28% 24.18% -
Total Expenses (Rs crore) 81.52 74.52 -

TajGVK Hotels: Stellar Q2 Results

During Q2FY25, the TajGVK Hotels net profit had risen 76.55% at Rs 19.65 cr from the year ago’s Rs 11.13 cr netted the same period last fiscal. Q-o-Q, the sequential comparison yielded 54.6% higher versus the Rs 12.71 cr in Q1FY25. It, therefore is indicating fast recovery and good prospects, suggesting that these strategies have been appropriate business policies followed by the hospitality industry in respect of it.

Revenue from operations jumped by a substantial amount of Rs 105.17 crore for Q2FY25 over Rs 89.42 crore for the same quarter of the previous year, thereby growing by 17.6%. Revenue was up 13.3% from the June quarter of FY25 at Rs 92.81 crore.

Profit Margins Improve and Expenses Grow

The Ebitda margin of the company increased to 28% in Q2FY25 from 24.18% in Q2FY24, which reflects better operational efficiency. However, total expenses also increased by 9.3% Y-o-Y to Rs 81.52 crore from Rs 74.52 crore for the same period last year. It reflects the cost of running and scaling the business that came with the huge revenue growth.

Background and Market Performance

It TajGVK Hotels & Resorts Ltd. is a company operating upscale hotels across the cities in India with the principal being Hyderabad, Chandigarh, and Chennai. As a result of this tie-up between the Indian Hotel Co. Ltd, in the Tata Group and Hyderabd-based GVK Group it was established February 2, 1995.

TajGVK Hotels’ shares have shown an excellent performance with its year-to-date increase amounting to 43.4% and over last year 45.6% while the BSE Sensex has grown only to 8.9% year to date and 22.3% over the last year. Such a performance by stocks clearly indicates that such a company has been solid and able to grow itself successfully in the market.

Market Capitalisation and Share Metrics

The market capitalisation of TajGVK Hotels is at Rs 2,072.91 crore. The stock is trading at a P/E ratio of 26.02 with an EPS of Rs 11.79. The numbers reflect a strong financial position and suggest investor confidence in the future potential of the company.

Current Market Position

The share price of the company was at Rs 335.15 on the BSE at 1:17 PM of the Q2 announcement date, with 9.28% uptrend and in contrast with the fall in the larger market that saw the BSE Sensex fall 1.51% at 78,518.56.

The Q2 results have further solidified the position of TajGVK Hotels as a growing leader in the hospitality industry. The dramatic increase in profits and improvement in margins are good signs for the company, making it a standout performer in the sector. Investors who are monitoring the hospitality market will certainly keep a close eye on TajGVK Hotels, given its proven track record and strategic growth.

Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.

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