| Author |
Message |
vivekkumar_in
Senior Member
Joined: 19/Sep/2006
Location: United States
Online Status: Offline
Posts: 606
|
   Posted: 25/Sep/2006 at 2:12am |
Basantji,
Want to dwelve more on to the aspect of ITH applying rental car & other things to ITC and hence not having pricing power. You are probably right wrt ITH & ITC.
But there are so many such parent-sibling organizations but the difference is,
- is the sibling company attracting multicude of customers apart from its own parent to be one of the customers
(or)
- is the parent company its major customer
Would'nt you agree?
In case of ITH and ITC , I belive ITH caters to regular hotel going public.
It may have a tie up with ITC as a corporate service provider and price negotiationg power may be low on the tie-up, but is not low for the rest of its customers.
The question is what amount of ITH's business is coming from ITC?
|
|
Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch
|
 IP Logged |
|
|
|
 |
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 25/Sep/2006 at 9:19am |
The question is what amount of ITH's business is coming from ITC?
____________________________________________________________
Absolutely. And I am not sure on this because I have never checked this company out. YOu know even after supplying to a single parent I had the privelage of getting more then 5 bagger in e-serve before the parent (CitiBank) finally got it delisted. So theer are no rules in this market just thoughts.
|
|
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
|
|
IP Logged |
|
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 03/Oct/2006 at 10:24pm |
|
Indian Hotel's all cash acquisition of Ritz Carlton in the US for US $ 170 million (Rs 780 crores) is significant. Cash deals generally increase the EPS/ RoE as the incremental return from the business is generally more then the cost of debt/ interest receivable on bank deposits what ever the case may be.
Edited by basant - 03/Oct/2006 at 10:57pm
|
|
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
|
|
IP Logged |
|
|
|
investor
Senior Member
Joined: 06/Sep/2006
Online Status: Offline
Posts: 1745
|
Posted: 04/Oct/2006 at 11:02am |
|
Overall the hotel (and tourism) industry seems well poised for growth over
the next 5 years.
There was a news story on CNBC yesterday which shocked me - There are just 5500 5-star category hotel rooms and a little over 3200 3-star category
hotel rooms in India. Can you beleive that, considering the size of India?
Almost every major hotel player is into major capex mode...and the fruits of this will be seen in the years ahead.
|
|
IP Logged |
|
|
|
Naren
Newbie
Joined: 27/Oct/2006
Location: India
Online Status: Offline
Posts: 14
|
Posted: 27/Oct/2006 at 1:14pm |
Dear Basantjee,
I fully agree with your view Indian Hotels defines India’s changing landscape. I am already holding it.
Do you think i can add more at these levels as the stock was split. Do you think the merger of TAJ GVK will happen soon? BTW, This forum is really a great.
|
|
Narendra.
|
|
IP Logged |
|
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 27/Oct/2006 at 2:10pm |
|
Thank you for joining in. Indian Hotels is a no brainer really. It should beat the market returns very easily. It is a hidden property play and that has not been noticed in the market - since the company will never sell its property what it benefits from is that increasing land prices will increase rentals and also room rates so room rates could go much higher - there is very little variable cost and every single rupee of additional revenue flows into the bottomline. I would suggest that you could add. AN undiscovered stock is Viceroy Hotels - slightly longer term in nature We should have a writeup on that soon.
|
|
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
|
|
IP Logged |
|
|
|
investor
Senior Member
Joined: 06/Sep/2006
Online Status: Offline
Posts: 1745
|
Posted: 27/Oct/2006 at 2:21pm |
|
Yes, a writeup on Viceroy would be welcome!
RJ has a stake in it, and i remember it being discussed on Damani's chat
for a while, but currently its too early to say anything about it.
Waiting for your writeup.
|
|
IP Logged |
|
|
|
akash
Newbie
Joined: 09/Sep/2006
Location: India
Online Status: Offline
Posts: 27
|
Posted: 27/Oct/2006 at 6:49pm |
|
RJ has also stake in Sayaji Hotels, I think these people are using a different style of business same like Taco Bells a foreign player. Plus the advantage with this stock is that the hotels and restuarnts they are devloping are basically aimed at mid teir segment same like ITC hotel are developing. So, it can also dark house in this sector.The concern with these stocks are that they at some point will get the competitive pressure feel from the big players and also the amount of equity dilution that will take place willreduce the ROCE as these comapny does not have much cash flows for funding their CAPEX plans. But other things apart this sector will remain hot for next few years. I think Basdantjio and other senior members will be able to better information.
Edited by akash - 27/Oct/2006 at 6:51pm
|
|
Akash Bedi
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
