From Rs 100 To Rs 10K: Not TCS, Or Tata Motors, But This Unpopular Tata Stock Gains 9,590% In Longest Run

When talking about popular Tata Group-backed stocks, many names would pop off such as the flagship arm TCS which is the largest tech giant in India in terms of market share. Or perhaps the auto lead Tata Motors and the list goes on! But there is one company, a smallcap, one backed by Tata Group that has emerged as a multi-bagger in 2023. If triple-digit isn't enough, this smallcap all-time gains are overwhelming, journaling from a mere Rs 100 to crossing over the Rs 10,000 mark at the start of 2024, and currently trading near those levels. This small-cap stock has also made many investors rich in its long-run!

As per the data, Benares was once below Rs 100 levels in mid-July of 1995. The journey to crossing the Rs 1000 mark was slower and longer and it did take place in 2014. The journey to Rs 2,000 levels and above saw a similar pattern, but it was only in 2023 that this stock shot up to sky-high levels in a blink!

A year ago, the stock was at Rs 3,371 apiece on February 13, and it has now risen by Rs 6,029 or 179%. The start of 2024 has been robust for Benaras shares as it touched an all-time high of Rs 10,051 apiece, 230% from its 52-week low of Rs 3,050.

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.

Last month, Dr Anant Narain Singh, Chairman, of Benares Hotels Limited (BHL) said, "We witnessed high demand owing to increase in domestic travel and events in the city. BHL reported three consecutive quarters of over 20% growth in revenue leading to an all-time high PAT for the nine months ending December 2023."

From April to December of FY24, the company's net profit was at Rs 24.4 crore versus Rs 15.8 crore in the corresponding period of the same year. Revenue from operations stood at Rs 87.2 crore in 9MFY24, compared to Rs 66.8 crore a year ago same period. Among the other key highlights is that -- BHL has commenced construction of a new wing comprising 100 additional rooms and a restaurant. In the first phase of renovation, Taj Ganges has operationalized its new swimming pool. Taj Nadesar Palace, Varanasi is exploring additional inventory on its premises. Meanwhile, Taj ranked as India's Strongest Brand across sectors and industries by Brand Finance's Brand Value Report India 2023

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.