Tata Group Hidden Stock Defies Weak Market Mood, Shares Gain 23.48%

Tata group stocks often catch the attention of investors. One of the lesser known Tata stock managed to defy the ongoing market slump and witnessed rally of 23.48% in last 1-month when BSE Sensex slipped 0.73% and BSE consumer discretionary sector fell 7.33%. The stock in talk is Benares Hotels Ltd. Recently, the company also reported healthy Q3 results in January. The company had recommended a final dividend of Rs 25/share in 2024 and traded ex-dividend on August 22, 2024. It has already declared a total of 21 dividends since August 14, 2003.

The stock never recommended any bonus share and stock split since January 1, 2000. Last trading price of Benares Hotels shares on BSE stood at Rs 10,212.65 apiece. Its market capitalisation is Rs 1,327.64 crore and offers a return of equity of 27.05%.

Benares Hotels Q3 Results

The company on January 14, 2025 announced its quarterly results. It announced its net profit for Q3FY25 at Rs 13.56 crore, up 20% year-on-year (YoY) as compared to Rs 11.30 crore declared in the corresponding quarter of last year. The firm posted a surge of 15.65% YoY in its revenue from operations at Rs 38.87 crore for Q3FY25 as against Rs 33.61 crore in Q3FY24. Total expenses of Benares Hotels stood at Rs 21.76 crore for Q3FY25, UP 12.51% FROM Rs 19.34 crore declared in Q3FY24. Meanwhile, its profit before tax announced at Rs 18.33 crore for the Q3FY25, up 21.2% as compared to Rs 15.13 crore declared in the similar quarter of last year.

Benares Hotels’ EBITDA zoomed 19.9% to Rs 19.9 crore in Q3FY25 as against Rs 16.7 crore announced in Q3FY24.

Benares Hotels Shares Performance

The 52-week high price of Benares Hotels shares stood at Rs 11,800.00 per share (as on 07.02.2024) and 52-week low price is Rs 7400.00 per share (as on 09/08/2024), respectively. Its market cap is Rs 1,327.64 crore. Benares Hotels shares surged over 34% in last 6-months, rose 11.28% in last 1-year, and logged triple digit returns of 207.46% in last 2-years. It offered eye-catching returns in last 5-years as shares zoomed 488.30% when Sensex soared 84.06%.

Why Benares Hotels Shares Witnessed Rally In Last Few Months

The stock soared mainly after registering robust financial growth as it revenue and profit recorded consistent growth. It has low debt-to-equity ratio that helps in boosting confidence of traders in its future potential. The growth in the tourism sector specifically in Varanasi also contributed towards the positive momentum where it operates.

About

Benares Hotels is a leading listed firm that came into existence in 1971. It operates its hotels such as Taj Ganges and Taj Nadesar Palace in Varanasi. Its other hotels namely Ginger and Gondia are based in Maharashtra. It is the subsidiary company of Indian Hotels Company Limited (IHCL). It became its subsidiary in 2011.

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