An Assignment ON Stock Price Analysis of ASIAN HOTELS

SUBMITTED TO: PROF. SUSMITA SARKAR FINANCE FACULTY DSBS

SUBMITTED BY: Pradeep Singha PGDMA-1135

Dayananda Sagar Business School Shivage Malleshwara Hills Kumaraswamy Layout, Bangalore, Karnataka 560078

Company Profile:-

The Company was incorporated as Asian Hotels Limited (the Company) under the Companies Act, 1956, on 13th November, 1980, as a Public Limited Company. It was promoted by Mr. R.K. Jatia, Mr. R.S. Saraf and Late Mr. Chaman Lal Gupta, three Non-resident Indians together with Mr. Shiv Jatia and Mr. Sushil Gupta, their Indian associates.

On incorporation, the immediate object of the Company was to set up a five star deluxe hotel of international standards in Delhi. Hence Hyatt Regency Delhi came into existence. After soft opening in 1982 for the Asian Games, it became fully operational in the year 1983. Later the Company set up two more five star deluxe hotels - at Mumbai and Kolkata. While Hyatt Regency Kolkata was operational effective 1st January, 2003, Hyatt Regency Mumbai commenced operations effective 1st April, 2003.

In 2010, through a Scheme of Arrangement and De-merger sanctioned by the High Court of Delhi vide Order dated 13th January, 2010, the Mumbai Undertaking and Kolkata Undertaking of the Company primarily comprising Hyatt Regency Mumbai and Hyatt Regency Kolkata respectively, were transferred to and vested in two separate companies with effect from 31st October, 2009.

Consequently, post de-merger the Company, now known as Asian Hotels (North) Limited, has only one operational property namely Hyatt Regency Delhi.

In August 2010, after due regulatory notifications, the main promoter groups namely the R. K. Jatia & Shiv Jatia Group, Gupta Group and Saraf Group transferred their respective shareholding inter-se in the three de-merged entities. Resultantly, the R. K. Jatia & Shiv Jatia Group acquired shares held in the Company by the other two promoter groups named above.

In October 2010, the Company made a strategic investment by acquiring majority stake in Fineline Hospitality & Consultancy Pvt. Ltd., Mauritius; and through its subsidiaries namely Most Prof Hospitality & Consultancy Pvt. Ltd., Mauritius and Lexon Ventures Pte. Ltd., BVI

acquired a controlling interest in Magus Estates and Hotels Limited, which owns and operates Four Seasons hotel in Mumbai.

Presently the Company, in addition to expanding its existing facilities, is in the process of constructing a new tower, comprising of serviced apartments and commercial space as part of the expansion at Hyatt Regency Delhi. They operate three 5 star deluxe category hotels. Locations: Delhi, Mumbai & Kolkata. They operate the Hyatt Regency brand on the above three locations.

Address:Asian Hotels (North) Limited Hotel Hyatt Regency Delhi Bhikaiji Cama Place, M. G. Marg, New Delhi - 110066, India Telephone (Hotel Operator): +91-11-26791234 Fax : +91-11-26791033 Website : www.asianhotelsnorth.com

Stock Share Price:-

Date
08/11/2012 09/11/2012 12/11/2012 13/11/2012 15/11/2012 16/11/2012 19/11/2012 20/11/2012 21/11/2012 22/11/2012 23/11/2012 26/11/2012 27/11/2012 29/11/2012 30/11/2012 03/12/2012 04/12/2012 05/12/2012 06/12/2012 07/12/2012

Opening Price
190.35 190.00 185.15 189.95 188.85 190.00 181.00 181.00 176.00 175.35 176.00 175.10 179.00 177.00 175.00 176.00 179.90 176.00 185.00 178.00

Highest Price
193.90 192.90 189.95 189.95 188.85 190.00 185.65 181.00 177.95 179.90 179.50 183.95 179.00 177.00 175.50 179.00 179.90 182.95 185.00 178.00

Lowest Price
189.35 185.00 185.00 189.95 181.00 180.55 181.00 177.95 175.00 175.35 175.55 172.30 171.00 172.00 172.50 176.00 179.90 174.00 185.00 176.70

Closing Price Volume

193.90 192.50 189.95 189.95 181.10 181.00 181.00 179.95 175.15 176.40 179.50 172.30 174.80 177.00 175.00 178.60 179.90 182.95 185.00 177.85 340 609 26 00 432 377 18 1157 254 16 255 86 1028 30 227 146 22 144 3 792

160 200 400 600 800 0 8/11/2012 9/11/2012 12/11/2012 13/11/2012 15/11/2012 16/11/2012 19/11/2012

165

170

175

180

185

190

195

200

1000

1200

1400

Graph:-

8/11/2012

9/11/2012

1- Volume

12/11/2012

13/11/2012

15/11/2012

16/11/2012

19/11/2012 20/11/2012
21/11/2012 22/11/2012 23/11/2012 26/11/2012

20/11/2012

21/11/2012

22/11/2012

23/11/2012

2- Opening Price and Closing Price

Volume

26/11/2012

27/11/2012
29/11/2012 30/11/2012 3/12/2012 4/12/2012 5/12/2012 6/12/2012 7/12/2012

27/11/2012

29/11/2012

30/11/2012

3/12/2012

4/12/2012

5/12/2012

6/12/2012

7/12/2012

Volume

OP. Price

Clo. Price

3- Highest Price and Lowest Price

200 195 190 185 180 175 170 165 160 155 H. Price L. Price

4- Graph as per Opening, Closing, High Price, Lowest Price.

200 195 190 185 180 175 170 165 160 155 Opening Closeing Low.Price Hig.Price

3/12/2012

8/11/2012

9/11/2012

4/12/2012

5/12/2012

6/12/2012

12/11/2012

13/11/2012

15/11/2012

16/11/2012

19/11/2012

20/11/2012

21/11/2012

22/11/2012

23/11/2012

26/11/2012

27/11/2012

29/11/2012

30/11/2012

7/12/2012

Analysis:The stock is still undervalued based on the following logics The three hotels i.e. at Delhi, Mumbai & Kolkata will get listed separately. So a shareholder holding 3 shares of Asian Hotels currently will get 1 share each of each of the separate entity. Since long Asian Hotels hasnt expanded its hotel base. It is said that there were conflicts between the promoters and hence the company wasnt aggressive. With the demerger, the negative synergy should be remove The unlocking of the hidden value for the current shareholders can be expected with this demerger. The hotel sector is also recovering with the upturn in the economy. Going by the latest newspaper headlines, occupancies are back to 85% though ARRs are still 10-20% below normal peak levels. Hotels stocks are still down more than 50% below the crash levels. Asian Hotels is one of the most aggressive company of the existing 3. I expect the stock to list at 175+ openings price If anyone had invested to take benefit, he should book profits above these levels.