Tata's Unknown Dividend Paying Hotel Stock Makes Big Announcement; Share Near Rs 9,000, 570% Up In 5 Years

Benares Hotels, is an indirect subsidiary of conglomerate Tata Group. Its not among the renowned Tata stocks, but definitely one of the expensive ones in terms of per share. Benares is a subsidiary of Indian Hotels which is the flagship travel and toursim company of the Group. And on Tuesday, Benares Hotels have made a big announcement.

As per the regulatory filing, Benares said that in a meeting held on March 2024, its board of directors approved the appointment of Veeramani Venkata as the Chief Financial Officer (CFO) i.e. Key Managerial Personnel (KMP).

Veeramani Venkata, aged 52 years, has over 30 years of rich and extensive experience as a hotelier. He holds a Master of Business Administration, a Master of Commerce, and a Graduation degree from Andhra University, Visakhapatnam.

Further, he possesses vast experience in finance, treasury, and hotel operational management, with
exposure to destination resort operations and city hotels. Venkata has successfully led teams at The Park, The Trident (Oberoi), Ramada Caravela Beach Resort, Taj Nashik, and Visakhapatnam. Additionally, he has gained international exposure through roles at Dusit International in Bangkok, Warwick Hotels and Resorts in Fiji, Savoy Hotels Group in the UAE, Hospitality Management Holdings (HMH), and Sharjah National Hotels in the UAE.

On BSE, Benares shares ended at Rs 8,902.65 apiece, down by 4.22%. The stock pulled back on Tuesday after it inched further closer to its Rs 10,000 mark. The stock opened at the intraday high of Rs 9,475 apiece before correcting.

Benares 52-week high and low is at Rs 10,051 and Rs 3,050 apiece respectively.

From its lows, Benares shares is currently up by 191.89%. In a year, the share price have zoomed by 171%. While its 5-year gains is massive by 571%.

Benaras has also reported strong Q3 results for FY24. In the third quarter of the current fiscal, the company reported a PAT of Rs 11.3 crore versus Rs 8.3 crore in Q3FY23. EBITDA came in at Rs 16.7 crore in Q3FY24, higher compared to Rs 12.7 crore in the same quarter a year ago. While revenue from operations zoomed to Rs 34.5 crore in Q3FY24, as against Rs 28.6 crore in Q3FY23.

Before May 2011, Benares was lesser known. But in May, it became a subsidiary of The Indian Hotels Company Limited, a company promoted by Tata Sons Private Limited. Benares gained attention with its new hotel branch under the Indian Hotels, namely Taj Ganges and Taj Nadesar Palace in Varanasi, followed by the rebranding of its The Gateway Hotel in Maharashtra to Ginger Hotel.

As of now, as per its website, Benares Hotels is a listed public limited company incorporated in 1971. The Company operates its hotels, viz. Taj Ganges and Nadesar Palace in Varanasi and Ginger Hotel, Gondia in Maharashtra. The Company became a subsidiary of The Indian Hotels Company Limited in 2011. While Taj Ganges and Nadesar Palace at Varanasi has 144 rooms and suits, Ginger Hotel at Gondia has 34 rooms.