Why is Soaltee Hotel Limited a distinguished player in the Hotel Industry of Nepal? Look at some major factors of influence
Mon, Jul 22, 2019 5:05 PM on Company Analysis, Exclusive, Featured,
SOALTEE HOTEL LIMITED
SYMBOL: SHL
SECTOR: HOTEL
TOTAL LISTED SHARES: 66,606,374
INTRODUCTION:
Soaltee Hotel Limited was founded in 1965 as a five-star luxury hotel and inaugurated on 25 November, 1966. Striving for service excellence, right from its inception, Soaltee Hotel has grown to become synonymous with luxury and hospitality in Nepal. Soaltee Hotel Limited (SHL), Nepal’s pioneer hospitality company, is the owner of Soaltee Crowne Plaza (Kathmandu), a 12-acre five-star deluxe hotel, and LSG Sky Chefs Kathmandu, Nepal's only in-flight catering that matches up to first-class world standards.
BOARD OF DIRECTORS
|
Name |
Role |
|---|---|
|
Mr. Dinesh Bahadur Bista |
Executive Chairman |
|
Mr. Ravi Bhakta Shrestha |
Director |
|
Dr. Rajesh Kazi Shrestha |
Director |
|
Mrs. Jaya Rajya Laxmi Shah |
Director |
|
Mr. Sashi Raj Pandey |
Director |
|
Mr. Niranjan Kumar Tibrewala |
Director |
|
Mr. Prakash Bikram Khatri |
Director |
|
Mr. Ganesh Bahadur Chand |
Director |
|
Mr. Venkatesh Gomatam |
Director |
|
Mr. Lil Bahadur Khatri |
Company Secretary |
FINANCIAL INDICATORS
|
Ratio |
Indicator |
FY 71/72 |
FY 72/73 |
FY 73/74 |
FY 74/75 |
Q3 75/76 (YTD) |
|---|---|---|---|---|---|---|
|
Earnings Per Share |
NPR |
5.23 |
1.9 |
2.4 |
4.19 |
4.62 |
|
Market Value Per Share |
NPR |
425 |
375 |
361 |
243 |
206 |
|
Price Earnings Ratio |
Ratio |
81.26 |
197.37 |
150.42 |
58.00 |
44.59 |
|
Dividend (inc. Bonus) |
Percent |
31.57 |
21.05 |
21.05 |
26.31 |
- |
|
Cash Dividend |
Percent |
6.57 |
11.05 |
6.05 |
16.31 |
- |
|
Return on Total Assets |
Percent |
12% |
5% |
11% |
13% |
12% |
|
Return on Equity |
Percent |
19% |
9% |
12% |
19% |
20% |
|
Book Net Worth |
NPR |
27.65 |
21.17 |
20.63 |
21.59 |
23.43 |
Source: Annual and Quarterly Reports, (*Profit Ratio, EPS, ROA, ROE are annualized)
OTHER INDICATORS
(Source: SS Pro)
FACTS AND FIGURES
Note: Data except room occupancy percentage, plotted in the figures above for the last period 2075/76 include only 9 months data (up to Chaitra of 2075), due to which stats seems to be lowered compared to other years.
PRICE HISTORY OF SHL SINCE JULY 2014
Highest Trading Price: Rs 652
Lowest Trading Price: Rs 199
Highest Closing Price: Rs 646
Lowest Closing Price: Rs 199
52 Week High: Rs 265
52 Week Low: Rs 199
DIVIDEND HISTORY
MONTHLY STOCK OUTLOOK
(Source: SS Pro)
Based on its stock performance since 2011, Soaltee Hotel Limited (SHL) has closed higher in 77.78 % of April months. In terms of price change, it has gained the most (4.08 % on average) in September month and lost the most (-11.83% on average) in December month.
MEASUREMENT OF INVESTMENT RISK (VaR)
SYSTEMATIC RISK (β)
(Source: SS Pro)
After the setback caused by devastating earthquake in Baisakh 2072, Soaltee Hotel Limited is improving its position by posting good results afterwards. Its annualized net profit in FY 75/76 stands at Rs 308 million with 9% CAGR from year 71/72. Despite having a strong growth rate of 28%, due to its high price to earnings ratio and price to book value, both PEG ratio and Graham number suggest high overvaluation of Soaltee's stock.
As its profit strengthens over the year, its dividend payout is also increasing with a combination of both cash and bonus. Thus, it can be expected that the company declares higher dividend for 75/76 than last year. It is important to notice that as the face value of the company is Rs 10, if the company distributes 10% cash dividend, investors will get Rs 1 per share unlike Rs 10 in other listed companies.
With a promising increase in number of tourists visiting the country and government's plan to attract 2 million tourists in year 2020 (Visit Nepal Year), the good days for the hotel industry is on the cards. But, will increasing number of five star hotels cut down Soaltee's revenue and how will Soaltee respond to this competition? Only time will tell.
