KANDY HOTELS- KHC

Hawk Eye · 1 KANDY HOTELS- KHC Tue Apr 26, 2011 2:58 pm

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Share went up by nearly Rs 20. Went up to Rs.280 in the morning and was stagnating around 270 afterwards. closed at 275. not much shares traded. All time high is 365 in sept 2010.

Earnings are not that impressive, but a strong balance sheet. NAV is around 250 and EPS is 0.60

Anyone studied this share. please share

nuwank · 2 KHC Tue Apr 26, 2011 4:15 pm

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Undervalued share which has a very low NAV due to non revaluation of assets. The real value might be many times the current NAV. Who knows they might have a buyer for a stake. Forget the EPS on shares like these for now and look at the real NAV.
CHOT owns a major share. I think around 75% of KHC.
KHC has monopoly on the hotel rooms of this rating in the city of Kandy. Can't build anymore of these hotels and these are 2 great assets that can command a premium for them. KHC - Suisse Hotel and Queens hotel with a lot history behind them.

Hawk Eye · 3 Re: KANDY HOTELS- KHC Wed Apr 27, 2011 6:21 am

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Thanks for the insights Nuwan

nuwank · 4 CHOT Wed Apr 27, 2011 2:28 pm

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Keep an eye on CHOT too. It has similarly undervalued properties in great locations around the country. Location wise, I think the best listed hotel company in Sri Lanka. I doubt, there is any other hotel company that has unique locations and such a diverse collection of hotels. More than 20 hotels that need only a refurbishment and rebranding.
It only needs a large investor or a hotel chain to look at it's assets to appreciate the value. Then it will start moving, and then, the retail investors will jump in. By that time, it might be too expencive.

Hawk Eye · 5 Re: KANDY HOTELS- KHC Wed Jun 01, 2011 10:18 am

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KHC Net Asset Value Rs 330.49 compared to last year Rs.255.54. Considerable improvement in Q 2 Q performance. Annual EPS

After tax profits increasd by 1450%, so the EPS.

EPS for the current year 3.42 compared to last year 0.22.

based on what the current market valuation is NA, PE?