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In a falling market, SmallCap Hotel stock jumped 29% in 2 days, there was a rush to buy shares; price reached new highs
The stock's over-the-counter average trading volume surged 1.5 times, with 22 lakh equity shares exchanging hands on NSE and BSE combined.
Shares of Taj GVK Hotels & Resorts hit a new high of Rs 497.60. The stock climbed as much as 7 per cent on the BSE in intra-day trade on Thursday.
Why did the stock of Taj GVK Hotels & Resorts rise?
The stock has gained 29 per cent in the last two trading days. It has gained 41 per cent so far in the month of February.
With a combined 22 lakh equity shares exchanged on the NSE and BSE, the average trading volume on the counter increased 1.5 times.
TajGVK is a joint venture (JV) between GVK Group and The Indian Hotels Company Limited (IHCL). GVK Group holds approximately 49.47 per cent stake in the joint venture and IHCL holds approximately 25.52 per cent stake in TajGVK (as of December 31, 2024). The balance is held by the public.
The company has a strong presence in the Hyderabad market and its properties have been in existence for many years.
TajGVK's flagship 5-star deluxe property - Taj Krishna - is a well-established property in the Hyderabad Central Business District (CBD), earning a revenue per available room (RevPAR) premium compared to other properties in the vicinity.
The company's profit after tax grew 40 per cent year-on-year to Rs 33.89 crore in October to December 2024 (Q3FY25). While it was Rs 24.21 crore in Q3FY24.
Revenue from operations grew 14 per cent from Rs 111.13 crore in the September quarter to Rs 126.94 crore in the December quarter.
According to analysts, apart from company-specific factors, improvement in the Indian hospitality sector, low penetration of hotels compared to other countries, supply compared to demand and headwinds such as government support for tourism and infrastructure will help the hotel business deliver strong performance in the coming years.
| Topic | Details |
|---|---|
| Stock Performance | Taj GVK jumped 29% in 2 days, reaching ₹497.60 |
| Trading Volume | 22 lakh shares exchanged; volume surged 1.5 times |
| Q3FY25 Financials | Profit: ₹33.89 crore (+40% YoY) Revenue: ₹126.94 crore (+14% QoQ) |
| JV Structure | GVK Group: 49.47%, IHCL: 25.52%, Public: Rest |
| Growth Drivers | High demand, low supply, government tourism support |
| Market Impact | India’s market cap dropped below ₹400 lakh crore due to FPI selling |
| Other Stock Movements | Trent declined after record highs |
FAQs
Why did Taj GVK Hotels & Resorts' stock rise by 29% in two days?
The stock surged due to strong Q3FY25 earnings, improved market sentiment in the hospitality sector, and increased investor interest.
How much stake do GVK Group and IHCL hold in Taj GVK?
GVK Group holds approximately 49.47%, while IHCL owns around 25.52%. The remaining shares are publicly held.
What was the trading volume surge in Taj GVK stock?
The stock’s average trading volume increased 1.5 times, with 22 lakh equity shares traded on NSE and BSE combined.
How did Taj GVK perform financially in Q3FY25?
The company reported a 40% YoY rise in profit after tax to ₹33.89 crore and a 14% QoQ revenue growth to ₹126.94 crore.
What factors are driving growth in the Indian hospitality sector?
Industry growth is fueled by low hotel penetration, high demand vs. supply, government support for tourism, and infrastructure development.
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