Wednesday 12 November 2008

Hold Taj GVK Hotels: PINC

PINC Research has downgraded its rating on Taj GVK Hotels & Resorts to hold in its November 7, 2008 research report. "TajGVK Hotels & Resorts Ltd. (TAJGVK) reported revenues of Rs 616 million (+4%YoY) in Q2FY09. A marginal increase in capital charges and tax provisioning resulted in net profits settling at Rs 163 million (flat YoY). While we like TajGVK’s business model on account of its diverse product portfolio and ability to leverage its offerings to maximise revenues, we believe that the ongoing turmoil in the global economy will lead to a clampdown in discretionary spending, by both corporates and individuals. This has the potential to impact revenues and profits. Hence, we downgrade our recommendation to ‘HOLD’ and will revisit the same in subsequent quarters," says PINC's research report.

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Source: Moneycontrol

Posted by Harsh at 09:20

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