Velan Hotels

What does Velan Hotels do?

Velan Hotels Ltd operates in the hospitality sector, focusing on hotels and resorts, and is categorized as a Micro Cap company. It was established in 1990, with its first hotel opening in 1992, and currently reports a market cap of Rs 19 Cr and a recent net profit of -12 Cr as of March 2025.

Overview:<BR>Velan Hotels Ltd operates in the hospitality sector, specifically in the Hotels & Resorts industry, and is categorized as a Micro Cap company.<BR><BR>History:<BR>Velan Hotels was incorporated as a private limited company in March 1990 and converted into a public limited company in June 1992. The company commenced commercial operations of Hotel Greenfields in South Tirupur, Tamil Nadu, by October 1992. The latest reported quarter for sales and profit is March 2025.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: N/A<BR>Most recent Net Profit: -12 Cr (Quarterly Results - Mar 2025)<BR>Market-cap value: Rs 19 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: N/A (Loss Making)<BR>Industry P/E: 56<BR>Dividend Yield: 0.00%<BR>Debt-Equity: 9.15<BR>Return on Equity: -49.36%<BR>Price-to-Book: 3.46<BR><BR>Contact Details:<BR>Address: No 41 Kangayam Road, Tirupur Tamil Nadu: 641604<BR>Phone: 91-421-2424426-30/4311111<BR>Email: accounts@velanhotels.com/investorre<BR>Website: http://www.velanhotels.com

Has Velan Hotels declared dividend?

Velan Hotels Ltd has declared an 8% dividend, amounting to 0.8 per share, with an ex-date of August 8, 2011. Despite the dividend declaration, there has been no dividend yield recently, and total returns have varied, showing negative performance in the short term and positive returns over longer periods.

Velan Hotels Ltd has declared an 8% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 8%<BR>- Amount per share: 0.8<BR>- Ex-date: 08 Aug 11<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was -11.24%, with a dividend return of 0%, resulting in a total return of -11.24%.<BR><BR>In the 1-year period, the price return was -7.26%, with a dividend return of 0%, leading to a total return of -7.26%.<BR><BR>Over the 2-year period, the price return was -1.64%, with a dividend return of 0%, resulting in a total return of -1.64%.<BR><BR>In the 3-year period, the price return was -16.67%, with a dividend return of 0%, leading to a total return of -16.67%.<BR><BR>For the 4-year period, the price return was 70.94%, with a dividend return of 0%, resulting in a total return of 70.94%.<BR><BR>In the 5-year period, the price return was 50.0%, with a dividend return of 0%, leading to a total return of 50.0%.<BR><BR>Overall, Velan Hotels has declared a dividend, but there has been no dividend yield in recent periods. The total returns show a mix of negative returns in the short term and positive returns over longer periods, indicating volatility in the company's performance.

Who are the peers of the Velan Hotels?

Peers of Velan Hotels include Indian Hotels Co, ITC Hotels, EIH, and others. Indian Hotels Co shows the highest 1-year return at 34.77%, while Velan Hotels has a return of -4.51%.

Peers: The peers of Velan Hotels are Indian Hotels Co, ITC Hotels, EIH, Chalet Hotels, Ventive Hospital, Ras Resorts, Sterling Green, Lords Ishwar, Sanghvi Brands, and Univa Foods.<BR><BR>Quality Snapshot: Excellent management risk is observed at EIH, while Average management risk is found at Indian Hotels Co, and the rest have Below Average management risk. Good growth is noted at Indian Hotels Co and EIH, while Excellent growth is seen at Ventive Hospital, and the rest have Below Average growth. Excellent capital structure is present at EIH, while Good capital structure is found at Indian Hotels Co, and the rest have Below Average capital structure.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Indian Hotels Co at 34.77%, while Sanghvi Brands has the lowest at -56.00%. Velan Hotels' 1-year return of -4.51% is better than Sanghvi Brands but worse than Indian Hotels Co. Additionally, EIH, Ventive Hospital, and several others have negative six-month returns.

Is Velan Hotels overvalued or undervalued?

As of April 25, 2023, Velan Hotels is considered a risky investment due to its negative financial ratios, including a PE ratio of -7.11 and an ROE of -49.36%, indicating overvaluation compared to peers like Indian Hotels Co and ITC Hotels, and it has underperformed against the Sensex with a year-to-date return of -18.25%.

As of 25 April 2023, the valuation grade for Velan Hotels has moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company appears to be overvalued based on its financial ratios, with a price-to-earnings (PE) ratio of -7.11, an EV to EBITDA ratio of -69.00, and a return on equity (ROE) of -49.36%. These figures suggest that the company is struggling financially and may not be a sound investment at its current price of 6.27.<BR><BR>In comparison to its peers, Velan Hotels' financial metrics starkly contrast with those of Indian Hotels Co, which has a PE ratio of 66.81, and ITC Hotels, with a PE ratio of 65.26, both classified as very expensive. The negative ratios of Velan Hotels highlight its poor performance relative to the industry, reinforcing the conclusion that it is overvalued. Additionally, the stock has underperformed against the Sensex over various time frames, particularly with a year-to-date return of -18.25% compared to the Sensex's 5.59%, further supporting the assessment of its overvaluation.

Who are in the management team of Velan Hotels?

As of March 2022, the management team of Velan Hotels includes E V Muthukumara Ramalingam (Managing Director), M R Gautham (Executive Director), and several non-executive and independent directors, including P Ganesan, M Sasikala, S P Sivanandam, and Nagaraj Saveethkumar, along with M Srinivasan as Company Secretary.

As of March 2022, the management team of Velan Hotels includes the following individuals:<BR><BR>1. E V Muthukumara Ramalingam - Managing Director<BR>2. M R Gautham - Executive Director<BR>3. P Ganesan - Non-Executive & Independent Director<BR>4. M Srinivasan - Company Secretary & Compliance Officer<BR>5. M Sasikala - Non-Executive & Non-Independent Director<BR>6. S P Sivanandam - Non-Executive & Independent Director<BR>7. Nagaraj Saveethkumar - Independent Director<BR><BR>These members play various roles within the company's governance and management structure.

Who are the top shareholders of the Velan Hotels?

The top shareholder of Velan Hotels is Sri E.V. Muthukumara Ramalingam, holding 34.52%, with no pledged promoter holdings. The highest public shareholder is Kaliappagounder Subramaniam at 1.75%, while individual investors own 22.84% of the shares.

The top shareholders of Velan Hotels primarily consist of promoters, with Sri E.V. Muthukumara Ramalingam holding the largest share at 34.52%. There are no pledged promoter holdings, and the company does not have any mutual funds or foreign institutional investors involved. The highest public shareholder is Kaliappagounder Subramaniam, who holds 1.75%. Additionally, individual investors collectively hold 22.84% of the shares.

How big is Velan Hotels?

As of 24th July, Velan Hotels Ltd has a market capitalization of 21.00 Cr, with reported Net Sales of 0.00 Cr and a Net Profit loss of 12.81 Cr in the latest four quarters. Shareholder's Funds are 5.45 Cr and Total Assets are valued at 61.71 Cr as of March 2024.

As of 24th July, Velan Hotels Ltd has a market capitalization of 21.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, Velan Hotels reported Net Sales of 0.00 Cr and a Net Profit loss of 12.81 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, with Shareholder's Funds amounting to 5.45 Cr and Total Assets valued at 61.71 Cr.

Are Velan Hotels latest results good or bad?

Velan Hotels' latest results show mixed performance, with a slight increase in operating profit and a 96.29% rise in net profit, but flat net sales growth and a 'Strong Sell' rating from MarketsMOJO indicate cautious market sentiment. Overall, while there are signs of improvement, the results may not be viewed as entirely positive.

Velan Hotels' latest financial results for the quarter ending June 2025 indicate a mixed performance. While the company reported an operating profit (PBDIT) of Rs -0.06 crore, this figure is the highest it has seen in the last five quarters, suggesting a slight positive trend in its near-term operating performance.<BR><BR>On the other hand, the net profit showed a significant improvement, with a growth of 96.29% compared to a drastic decline in the previous quarter. However, despite these improvements, the company's stock is rated as a 'Strong Sell' by MarketsMOJO, reflecting a cautious outlook from the market.<BR><BR>Overall, while there are some signs of improvement in Velan Hotels' financial performance, the flat net sales growth and the cautious market sentiment suggest that the results might not be viewed as entirely positive. The company is working on enhancing its performance as it navigates the competitive hospitality landscape.

When is the next results date for Velan Hotels?

The next results date for Velan Hotels is 14 November 2025.

The next results date for Velan Hotels is scheduled for 14 November 2025.

Should I buy, sell or hold Velan Hotels?

How has been the historical performance of Velan Hotels?

Velan Hotels has experienced a significant decline in financial performance from March 2021 to March 2025, with net sales dropping to 0.00 Cr, increasing losses, and negative equity, culminating in a profit before tax of -12.81 Cr and reserves of -44.89 Cr. The company's earnings per share also fell from a profit of 2.93 in March 2022 to a loss of -4.01 in March 2025.

Answer:<BR>The historical performance of Velan Hotels shows a significant decline in financial metrics over the years, particularly from March 2021 to March 2025.<BR><BR>Breakdown:<BR>Velan Hotels reported net sales of 0.04 Cr in March 2021, which drastically fell to 0.00 Cr by March 2025. Other operating income remained consistently at 0.00 Cr throughout this period, leading to total operating income that also stagnated at 0.00 Cr from March 2022 onwards. The total expenditure, excluding depreciation, decreased from 4.66 Cr in March 2020 to 0.89 Cr in March 2025. Operating profit (PBDIT) showed a negative trend, with losses increasing from -0.29 Cr in March 2019 to -0.89 Cr in March 2025. Interest expenses surged to 11.38 Cr in March 2025, contributing to a profit before tax of -12.81 Cr, a stark contrast to the profit of 9.38 Cr recorded in March 2022. The company's reserves turned negative, reaching -44.89 Cr in March 2025, while shareholder's funds fell to -7.36 Cr. The earnings per share (EPS) also reflected this decline, with a loss of -4.01 in March 2025 compared to a profit of 2.93 in March 2022. Overall, the financial health of Velan Hotels has deteriorated significantly, marked by increasing losses and negative equity.

Why is Velan Hotels Ltd falling/rising?

As of 18-Jan, Velan Hotels Ltd's stock price is rising to 5.66, reflecting a short-term gain of 2.35%. However, the stock has a negative long-term outlook with a year-to-date decline of -5.67% and significant financial risks due to high debt and a negative book value.

As of 18-Jan, Velan Hotels Ltd's stock price is rising, currently at 5.66, reflecting a change of 0.13 or 2.35% increase. The stock has shown a positive performance over the past week, with a return of +3.47%, and has outperformed the sector by 3.23% today. Additionally, it has been gaining for the last three days, accumulating a total return of 8.85% during this period.<BR><BR>Despite these short-term gains, it is important to note that the stock has a negative long-term outlook, with a year-to-date decline of -5.67% and a significant drop of -24.63% over the past year. The stock's performance has consistently underperformed against the benchmark, with a notable underperformance over the last three years. Furthermore, the company has a negative book value and high debt levels, which contribute to its weak long-term fundamental strength. <BR><BR>While the current rise in stock price may be attributed to recent short-term gains and market movements, the overall long-term performance and financial health of Velan Hotels Ltd indicate significant risks and challenges ahead.

Which are the latest news on Velan Hotels?