Juniper Hotels Limited is a luxury hotel development and ownership company, and are the largest owner, by number of Keys of 'Hyatt' affiliated hotels in India as of September 30, 2023. They have a portfolio of seven hotels and serviced apartments and operate a total of 1,836 keys as of September 30, 2023. They benefit from a unique and longstanding partnership of over 40 years between Saraf Hotels and affiliates of a globally recognized premier hospitality brand, Hyatt Hotels Corporation (NYSE: H) ('HHC') (collectively with its affiliates 'Hyatt'). They are the only hotel development company in India with which Hyatt has a strategic investment. They own 19.6% of Hyatt group affiliated hotel rooms and apartments in India as on September 30, 2023 and have extensive experience in identifying opportunities in hospitality destinations, developing high-end hotels in these locations and nurturing them through active asset management. The hotels and serviced apartments are present across the luxury, upper upscale and upscale category of hotels and are established landmarks in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi. Besides Grand Hyatt Mumbai Hotel and Residences being the largest luxury hotel in India, the Hyatt Regency Lucknow and Hyatt Regency Ahmedabad are the largest upper upscale hotels in their respective markets and Hyatt Raipur is the only upper upscale hotel in Raipur. The Company is jointly held by Saraf Hotels and its affiliate, Juniper Investments and Two Seas Holdings (an indirect subsidiary of HHC). The partnership between the key stakeholders has been built over several decades. Saraf Group, led by Arun Kumar Saraf, have over 40 years of industry experience and have developed a number of hotels across South Asia. HHC is a global hospitality company with widely recognized, industry-leading brands and a tradition of innovation developed over 65 years, with a hotel portfolio consisting of 1,310 hotels and 313,257 rooms, across full service hotels and resorts, all-inclusive resorts, select service hotels, lifestyle hotels and other properties, as of September 30, 2023. They benefit from the experience of the key shareholders and are able to leverage their long-standing brand heritage, in-depth market understanding, operational experience, and the World of Hyatt loyalty program with approximately 42 million members as of September 30, 2023. As of September 30, 2023, (a) the Grand Hyatt Mumbai Hotel and Residences had 665 keys, which represents approximately 12% of the total supply of 5.4k luxury room inventory in Mumbai, and (b) Andaz Delhi had 401 keys, which represents approximately 12% of the total supply of 3.3k luxury room inventory in New Delhi. The significant presence in New Delhi and Mumbai provides with a strategic advantage from both international and domestic travel through these cities and the well-established business ecosystems. Ahmedabad is a hub for economic growth in Gujarat and Lucknow stands to benefit from the push for active investments in Uttar Pradesh. As of September 30, 2023, (a) the Hyatt Regency Ahmedabad had 211 keys, which represents approximately 26% of the total supply of 0.8k upper upscale inventory in Ahmedabad; and (b) the Hyatt Regency Lucknow had 206 keys, which represents approximately 52% of the total supply of 0.4k upper upscale inventory in Lucknow. In Raipur, the Hyatt Raipur was established to benefit from the industrial growth in the capital city of Chhattisgarh, the resource rich state. The Hyatt Place Hampi was established to cater to tourists visiting the Hampi UNESCO World Heritage Site, as well as to business travelers visiting the nearby steel manufacturing facilities. As per financial performance, Juniper Hotels Limited has posted total income / net profits of Rs 192.85 Cr / Rs (199.49) Cr (FY21), Rs 343.76 Cr / Rs (188.03) Cr (FY22), Rs 717.29 Cr / Rs (0.15) Cr (FY23) and Rs 337.43 Cr / Rs (26.50) Cr (Q2 FY24). So as per previous financials data, company has shown good growth, but posted consistent losses. Company has an average EPS of Rs (6.72) and average RoNW of (23.91%) for last three fiscals. Issue is priced at a P/BV of 6.09 as per NAV of 59.11 as on 30.09.23. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around (42.60), (5,350.76), (763.59) and (151.12) respectively, which looks fairly priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Three lead managers are associated with this IPO, and have handled around 111 IPOs in last three fiscals. JM Financial Limited : This is 48th Main Board IPO from this BRLM. From last 10 Main Board IPOs, two opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 Main Board IPOs, two are trading below issue price and remaining are trading above issue price.( As on 14.02.2024 ) CLSA India Private Limited : This is 7th Main Board IPO from this BRLM. From last 6 Main Board IPOs, three opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 6 Main Board IPOs, three are trading below issue price and remaining are trading above issue price.( As on 14.02.2024 ) ICICI Securities Limited : This is 59th Main Board IPO from this BRLM. From last 10 Main Board IPOs, two opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 Main Board IPOs, three are trading below issue price and remaining are trading above issue price.( As on 14.02.2024 ) As per financials, Juniper Hotels Limited has shown good growth, RoNW is (0.42%) and P/E is respectively (42.60), (5,350.76), (763.59) and (151.12) as per FY22, FY23, TTM and annualised FY24 earnings. Company is in business of luxury hotels, which is niche segment. Post IPO, company will become PAT positive and brand name is very strong. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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