Advani Hotels & Resorts (India) hit an upper circuit limit of 20% at Rs 74.25 at 14:46 IST on BSE, extending recent gains triggered by a recent report that ITC is close to acquiring a luxury hotel in Goa for Rs 700 crore from the company.
Meanwhile, the BSE Sensex was up 235.19 points, or 0.93%, to 25,463.84.
On BSE, so far 1.04 lakh shares were traded in the counter, compared with an average volume of 4,293 shares in the past one quarter.
The stock was current frozen at a 52-week high level. The stock hit a low of Rs 66.25 in early trade. The stock hit a 52-week low of Rs 27.10 on 1 August 2013.
The stock had outperformed the market over the past one month till 15 July 2014, rising 60.57% compared with the Sensex being flat in the same period. The scrip had also outperformed the market in past one quarter, rising 76.86% as against Sensex's 12.20% rise.
The small-cap company has an equity capital of Rs 9.24 crore. Face value per share is Rs 2.
A media report on Monday, 14 July 2014, suggested that ITC's hotel division is close to acquiring the Ramada Caravela Beach Resort from Advani Hotels & Resorts at a cost of Rs 700 crore. The 199-room, five-star deluxe hotel, which had a third of its rooms renovated in October last year, is managed by US-headquartered Wyndham Worldwide, report said.
The stock has risen 72.67% in three trading sessions from Rs 43 on 11 July 2014.
Meanwhile, Delta Corp was flat at Rs 86.25. It has risen 10.72% in three trading sessions from Rs 77.90 on 11 July 2014 on this report. Delta Hospitality & Leisure, a 100% subsidiary of Delta Corp, holds 35.6% stake in Advani Hotels and Resorts (India).
With regard to media reports that ITC Hotels is close to acquiring the Ramada Caravela Beach Resort from Advani Hotels & Resorts in Goa at a cost of Rs 700 crore, ITC clarified after market hours on Monday, 14 July 2014, that the report is speculative in nature and as a matter of best practice, the company does not respond to market rumours. ITC further said that the company routinely scans strategic opportunities for business growth and this process involves dialogues from time to time with relevant parties across the country for different businesses. As and when there is conclusive development of a substantive nature, the company keeps the stock exchanges informed.
Net profit of Advani Hotels & Resorts (India) rose 27.48% to Rs 5.66 crore on 1.46% rise in net sales to Rs 14.64 crore in Q4 March 2014 over Q4 March 2013.
Advani Hotels & Resorts (India) operates hotel and resort in Goa.
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