Kamat Hotels (India) Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Kamat Hotels (India) has not reported any payouts.
• Unable to evaluate Kamat Hotels (India)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Kamat Hotels (India)'s dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Kamat Hotels (India) is profitable, therefore cash runway is not a concern.
• Kamat Hotels (India) is profitable, therefore cash runway is not a concern.

Cons

• Kamat Hotels (India)'s short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not well covered by operating cash flow (14.3%, less than 20% of total debt).
• Kamat Hotels (India) has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
• Kamat Hotels (India)'s long term commitments exceed its cash and other short term assets.
• Irrelevant to check if Kamat Hotels (India)'s debt level has increased considering it has negative shareholder equity.
• Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
• Kamat Hotels (India) has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Kamat Hotels (India) board of directors is about average.
• Vithal's compensation has increased in line with Kamat Hotels (India) recently becoming profitable.
• The average tenure for the Kamat Hotels (India) management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Vithal's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Kamat Hotels (India) is not covered by any analysts.
• Kamat Hotels (India) has significant price volatility in the past 3 months.

past

Pros

• Kamat Hotels (India) has delivered over 20% year on year earnings growth in the past 5 years.
• Kamat Hotels (India) used its assets more efficiently than the IN Hospitality industry average last year based on Return on Assets.
• Kamat Hotels (India) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Kamat Hotels (India) has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• It is difficult to establish if Kamat Hotels (India) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
• Kamat Hotels (India) has become profitable in the last year making it difficult to compare the IN Hospitality industry average.

value

Pros

• Kamat Hotels (India)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
• Kamat Hotels (India)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
• Kamat Hotels (India) is good value based on earnings compared to the IN Hospitality industry average.
• Kamat Hotels (India) is good value based on earnings compared to the India market.
• BSE:526668 is up 19.9% outperforming the Hospitality industry which returned 11.5% over the past month.
• BSE:526668 is up 19.9% outperforming the market in India which returned 8% over the past month.

Cons

• Kamat Hotels (India) has negative assets, we can't compare the value of its assets to the IN Hospitality industry average.
• 526668 underperformed the Hospitality industry which returned -35.6% over the past year.
• 526668 underperformed the Market in India which returned -14.5% over the past year.