Hello Everyone,
My next value pick is Fomento Resorts & Hotels Ltd. I have moved from value to growth over the years. But nowadays, growth stocks are trading at higher multiples range. Fomento Resorts is not just value pick but it is the combination of growth plus value along with the good margin of safety. It is having the market cap of 206 crores, with the enterprise value of around 300 crores at the average trading price of Rs 129 on Friday (15-sep-2017).
About the company:
Cidade de Goa : Situated in the land of sun, sea and surf, the property comprises of 207 rooms that showcase the unique Goan Portuguese architecture and ambience. The property is preferred by discerning travelers worldwide due to its proximity to the beach and its courteous staff that lay emphasis on providing warm Goan hospitality. Cidade de Goa provides Goan experience and feel to its guests. It is situated on Vainguinim Beach and has a distinctive advantage with its proximity to the Capital Panaji and most of Goa’s frequently visited locations. Cidade de Goa is also a holiday destination by itself as it has something for everyone. One can find a variety of restaurants namely
Alfama, Chef’s Speciality restaurant that serves authentic Goan and Portuguese cuisine. Alfama has also been ranked amongst India’s 30 best restaurants by an independent customer survey conducted by a leading Media House.
Barbeque, the evening restaurant with a live kitchen. The Beachside Barbeque allows one a unique dining experience of grilled seafood, meats and vegetables.
Cafe Azul –Poolside coffee shop provides the ambience of an Italian café with a choice of varied menu. One can savour global cuisines at our buffet restaurant Laranja. Other Food & Beverage options include
Doçaria a charming tea and coffee lounge operating round the clock;
Taverna – the lobby bar;
Bar Latino, the pool side bar.
Visitors can de stress with the state of the art Health Club- Clube Saúde and Pavitra – The Ayurveda Spa. For the adventurous at heart, Cidade de Goa offers a vast array of options that include water sports, tennis, bird watching, beach games and an outdoor chess. For the business traveler, Cidade de Goa offers a variety of conference and banqueting facilities along with its Business Centre. Cidade de Goa can be summed up as “ Goa in a resort”.
Shareholding of promoters:
The promoter used to own more than 95% a few years back before 75% cap rule came into implementation. This 20% went to AJMERA family which might be the proxy to promoters.So this is very tightly held company. Thus, the liquidity is very less.
Revenue of the company:
- Sale of Room Nights
- Food and Beverage
- Wine and Liquor
- Lease rental income from the Casino (Right now in closed not sure when it will re-open)
- Interest on cash/FD.
Growth of Company:
