Financial Comparison of Hotels in Nepal: Soaltee, Oriental and Taragaon

INVESTOPAPER

Three hotel companies are listed in the Nepal Stock Exchange (NEPSE):

1. Soaltee Hotel

2. Oriental Hotel

3. Taragaon Regency Hotel

All three hotels have reported a decline in net profit in the second quarter of the fiscal year 2076/77. Soaltee hotel profit fell by 23.50 percent while the profit of the Oriental Hotel and Taragaon Regency Hotel plunged by 24 percent and 17 percent respectively.

We will try to make a financial comparison of these 3 hotels. From an investors’ point of view, investing in a hotel sector can be a good diversification strategy. So, feel free to compare these hotel stocks and analyze which one would you like to include in your portfolio.

Note:

  • It is based on the unaudited second-quarter report of fiscal year 2076/77. The numbers may differ after the audit.
  • The par value of the share of the Soaltee Hotel is Rs. 10. On the other hand, Oriental and Taragaon Regency have a par value of Rs. 100.
  • The market price of the share is of Poush end, 2076. The current share price may differ.
  • P/E ratio is based on the price of Poush end. At the current price, the P/E ratio may differ.

Financial Comparison of Hotels

Headings Soaltee Hotel Oriental Hotel Taragaon Regency Hotel
Paid-up Capital (‘Rs. Crores’) 73.27 112.81 188.67
Reserve & Surplus (‘Rs. Crores’) 101.13 110.39 71.38
Total Revenue (‘Rs. Crores’) 82.12 44.36 40.63
Net Profit (‘Rs. Crores’) 11.59 10.14 17.76****
Earning Per Share, EPS (‘Rs.’) 3.16 17.98 18.82 ###
Net worth per share (‘Rs.’) 23.80 197.66 152.51
Current Ratio 1.81 2.11 2.43
Market price per share (‘Rs.’)[Poush end, 2076] 204 454 271
P/E ratio 64.56 25.25 14.40 ###

Note:

**** This is profit before staff bonus and tax. After deducting the bonus and tax, the profit will decline accordingly. [Net Profit is not provided in the quarterly report]

#### Calculated taking Profit before staff bonus and tax as the Net Profit

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