PL First Cut – Chalet Hotels Ltd | 2QFY24
Prabhudas Lilladher Pvt Ltd
PL First Cut – Chalet Hotels Ltd | 2QFY24 – Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd
Chalet Hotels Ltd | 2QFY24 First Cut| Results broadly in line with our estimates | BUY | TP Rs 656| Market cap Rs116bn |
✳️Revenue increased 26.9% YoY to Rs3,145mn (PLe Rs3,213mn). Hospitality revenue was up 27.4% YoY to Rs2,845mn (PLe Rs2,903mn) while annuity revenue was up 29.7% YoY to Rs300mn (PLe Rs310mn).
✳️EBITDA increased 48.0% YoY to Rs1,260mn (PLe Rs1,196mn) with a margin of 40.0% (PLe 37.2%) as against a margin of 34.3% in 2QFY23 and of 35.3% in 1QFY24.
✳️PAT stood at Rs364mn with a margin of 11.6% (PLe 11.7%) as against a margin of 6.4% in 2QFY23 and of 28.5% in 1QFY24.
✳️ARR increased 21% YoY to Rs9,610 (PLe Rs10,150) while RevPAR was up 24% YoY at Rs7,034 (PLe of Rs7,207). Occupancy stood at 73% (71%/70% in 2QFY23/1QFY23)versus our expectation of 71%.
✳️Chalet currently trades at EV/EBITDA multiple of 22.0x/18.3x our FY24E/FY25E estimates. Currently, we have a BUY rating on the stock with a TP of Rs656.