Nuvama Placed "Buy" On Hotels Sector Small Cap Stock, Sees 73% Gains, Stock Rallies 10%

Nuvama, a leading broking firm, has placed a "Buy" on Royal Orchid Hotels Ltd. with a target price of Rs 433 apiece. According to the brokerage firm, if you buy the stock at the current market price, it can fetch up to 73% returns considering the given target price. Royal Orchid Hotels is a small-cap stock that operates in the Hotel & Resorts sector. It has a market capitalisation of Rs 715.25 crore. Key details below:

Stock's Current Market Price, Returns & 52 Week Low & High

The stock of Royal Orchid Hotels is currently trading at Rs 271 apiece, rallied over 10% compared to the previous close. The stock hit the52 week high on 1 December 2022 at Rs 317.70 apiece and 52 week low on 22 June 2022 at Rs 112.15 apiece, respectively.

The stock has given 11.35% positive return in the past 1 week, and 17.87% in the past 1 month, respectively. In the past 1 year, it has given 111.95% multibagger return. In the past 3 years, it has given 516.34% multibagger return. In the past 5 years, it has given 68.85% positive return.

Initiating coverage with a 'BUY' rating; potential upside of 92%

Nuvama has said, "Considering the favourable industry dynamics, capacity expansion, strong growth in profitability, improving Balance Sheet strength and expanding return ratios, we are optimistic about ROHL turning in profitable growth. The stock trades at a significant discount to its peers, which will narrow on improving brand recognition and robust financial performance."
It added, "At the CMP of INR226, the stock trades at 9.4x FY24E EPS and 5.9x FY24E EV/EBITDA. We value the stock at 12x FY24E EV/EBITDA - at the lower end of its historical trading range in an upcycle. We initiate coverage with a 'BUY' rating and TP of INR433."

Disclaimer - The stock has been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.