IPO Update: Royal Orchid Hotels

Capitalising on IT Cities, Strong business outlook

Royal orchid hotels has eneterd the capital market with a initial public offer of 68.2 lac shares on a book building basis in a price band of Rs150-165.

Investment Guru recommends investor to subscribe to the public issue. The issue not only offers handsome listing gains, but can also be hold for a medium term perspective. The hotel industry is in limelight and is expected to outperform in the near future. Royal orchid has an advantage of having hotels at prime locations in the happening city of bangalore and mysore and planning to expand in high demand cities of hyderabad and Pune.

Company & Issue highlights

The company belongs to Baljee group and operates 3 hotels in Bangalore & 1 in Mysore.

The company propose to use the issue procedds to expands its hotel chain to Hyderabad, Pune & Bangalore.

The company is focussing on the happening cities in India where the room occupancy and room rates are high. The business is less dependant on tourism and more on the business travels in these IT cities. The demand for hotels in these cities is expected to remain robust.

The company reported a profit of 12.98 Crore on a turnover of 58 crore for FY2005. However for the First half of current year, the profit zoomed to 8.56 croreson a turnover of 35 Crores.

Based on FY05 EPS of 7.10, the issue price works out to be at P/E multiples of 23. The peers are currently valued at a P/E range of 20-30.

Issue details
Opens: January 12th,2006
Closes : January 17th,2006
Registrar : MCS Ltd.
Retail Investors: Rs.1 Lac

13 comments:

value06 said...

Hi
Nice blog keep it up
i am working in USA and i have been reading your blog form last couple of days nice blog
we have small reserch company in india for stock related.
we are looking for company visit guys in banglore
could you let me konw

mohit said...

Hi rajesh,
Thanks for the update (after long time seeing an IPO update on this blog). I like your style of writing ewhich is a mix of simplicity and power pack information.
Please keep up your good work.

Mohit singh
Jaipur

Anil Kumar said...

Hi All,

Everybody is expecting good investment idea from Guru Blog and always wants to be in profit, but no body is thinking that as of now Rajesh Ji is posting the idea for us without paying anything.

Thus, we should not think always regarding profit for us, we should also think for others, how he is putting effort and doing hardwork.

Once again I will appreciate Rajesh for doing such kind of tremendous work for people.

I also bought Guj. Ambuja 100 shares @ 73 as per recomendation of Rajesh Ji and sold @85, coz. I had a target for earning only 1000 Rs. from this stocks.

But in Beeyu Overseas bought 1000 @ 18.80, but since it is giong down now, still I am holding untill unless it will reach to target, and still patient is there.

Please comment if you realy get benefited from this blog.

Thanks and Regards
Anil Kumar

Anonymous said...

I am coming to this blog since July 2005 and has benefitted tremendously with Mr. Soni's Ideas. I have high regards for him and agree with Anil's comments that he is doing a wonderful job.
It has become a habit now to check his blog regularly.

SS

Anonymous said...

Hi Rajesh
Is still still ok to buy Reliance Industrial Infrastructure ? If yes, what is the target price ?
Please advice.

jaw_amo said...

I have already invested in nitin spiners ipo.Ihave only 1.5 lakhs left with me so amogh these in which i apply in what proportion for maximum gains
1.Royal orchid
2.Raj rayon
3.andra bank
4.bob
5.sakthi paper
6.dynemic products
7.Guj state petro
8.Dainik jagran

is bandhitters(.)com site good for short term picks?

spi_spot said...

Hi!Rajesh,

What happened to the mailing list you had thought of starting?

BTW, Trader Insight Blog looks good with new look. Keep it up.

Anonymous said...

Hi Rajesh,
What are your viws on nitin spinner IPO? I have invested 40 K in this IPO. ALso out of current IPO's , which are worth applying inaddition to Royal Orchid IPO that you mentioned.

Anonymous said...

The hotel looks good :)

Anonymous said...

Hi Rajesh,

I totally agree with Anil and others that u r doing awesome job. Keep it up.

I also bought 150 shares of Guj Ambuja and holding it as it seems a good long term bet.

Can you please provide your valuable inputs on
1. IDFC
2. Aditya Birla Nuvo Ltd (Indian Rayon)
3. Mcdowel
4. Mahindra & Mahindra

I am looking to invest for atleast 12 months span. How wld you divide your 1 Lac in to above scripts?

Please help as you always do...

Thanks...

Supal Patel
Pune

Investor Forum said...

Investor Forum Blog Update

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Log on to http://investorforum.blogspot.com

Investor Forum said...

Investor Forum Blog Update

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Log on to http://investorforum.blogspot.com

Ashutosh agarwal said...

Thanks for keeping up the good work.I will like to know ur take on reliance.Just if you can give some insight as whether to enter into this stock at 870-930 or to sell it off.This is a important stock and ur comments will be interesting and most welcome.

Best Regards,
Ashutosh.