Gujarat Hotels' Q2 FY25 Report Shows Mixed Performance, Decline in Profitability

Net Profit Margin – Quarterly: Lowest at 3.5% in the last five quarters.Decrease in profitability; company is earning less profit on each rupee of sales.

Gujarat Hotels, a microcap company in the hotel, resort, and restaurant industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Gujarat Hotels has shown a flat performance in the quarter, with a score of 3 out of 10, which is an improvement from the previous score of 1. The company’s operating cash flow has been consistently growing over the last three years, with the highest annual amount of Rs 2.88 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

In terms of dividends, Gujarat Hotels has been distributing a higher amount of Rs 2.50 per share annually in the last five years, indicating that the company is sharing its profits with its shareholders.

However, there are some areas that are not performing well for Gujarat Hotels. The company’s earnings per share (EPS) for the quarter were at its lowest in the last five quarters, at Rs 1.90. This shows a decline in profitability, as the company has generated lower earnings for its shareholders. Additionally, the net profit margin for the quarter was also at its lowest in the last five quarters, at 3.5%. This indicates a decrease in profitability, as the company is earning less profit on each rupee of sales.

Overall, Gujarat Hotels has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects such as growing operating cash flow and higher dividends, there are also areas of concern such as declining profitability. Investors should carefully consider these factors before making any investment decisions.