Robust Hotels Hyatt Chennai - undervalued asset play?

Hi VPs - I recently got onboarded on the platform, have been reading a lot till the time my registration got approved. Absolutely mesmerized with the depth of content here.
I am taking a shot at sharing my analysis of a company and posting for the first time here, please bear with me in case of any amateur mistakes.

Incorporated in 2007 and promoted by Late Mr Saraf. Robust operates a five-star hotel property under the Hyatt Regency brand in Chennai. RHL was demerged from Asian Hotels (East) Ltd (which now accounts only for the Hyatt Hotel in Kolkata).

The company recently had a re-evaluation of its land and building value.

I also did a back of the hand calculation using Google Earth and land price rates in Anna Salai, Chennai.
The re-valuation seems okay on the back of the hand calculations.
The land area comes to around 150k sq feet as shown in the image below.

Residential plot rates in Anna Salai, Chennai as per simple google estimates is nearly 20k/ sq feet (would welcome comments if someone would have a better sense)
Using these 2 numbers - the land value comes to roughly 300 cr as mentioned in the re-valuation exercise undertaken by the company.

If I were to look at company value from an asset replacement method, land value is 300 cr,
Building and PPE even at a 60% haircut comes to around 200 cr. Long term borrowings is 80cr.
So net assets - long term borrowings comes to around (300+200-80) = 420 cr.
Current market cap is around 180cr.
Company has no contingent liabilities ( Hyatt Kolkata has a contingent liability base of around ~ 160cr)

Basis my understanding, Hyatt Chennai also has a few long term negotiations with 1 or 2 corporates. A leading consulting company has their satellite office in one of the floors.

Please let me know your views on this analysis, happy to receive feedback as this is my first analysis of a company.


You can open a thread basing on one aspect of a company, but you should also provide many details pertaining to the business of the company, as per the guidelines of the forum, there are many ways to do this, and you can come up with your way of presenting.

For this particular kind of business, check the threads on hotels in the forum, there are a few, in case you don’t know about them.