Hotel stock jumps 16.6% after receiving orders worth ₹64 Cr from Tata Main Hospital and more

Synopsis: Apollo Sindoori Hotels Limited’s subsidiary company, Sindoori Management Solutions Private Limited, has received three new work order contracts worth Rs. 64 Crore from government and institutional entities, which includes Tata Main Hospital, Government of  Rajasthan Secretariat and Overseas Manpower Corporation Limited

The shares of this microcap company is majorly engaged in the business of managing food outlets at institutions which includes, hospitals, clinical nutrition, facilities management and outsourcing services were in focus after its subsidiary wins a multi-client order. 

With the market capitalization of Rs. 304 Crores, the shares of Apollo Sindoori Hotels, reached an intraday high of Rs. 1,380 per share, surging 16.6  percent from its previous day closing of Rs. 1,188 per share and is trading at a P/E of 27.5, whereas the industry P/E stands at 36.6 

What is the News: 

Apollo Sindoori Hotels Limited has informed the exchanges that its wholly owned subsidiary, Sindoori Management Solutions Private Limited, has received three domestic work order contracts covering integrated facility management, porter services, facility management services, and manpower outsourcing. 

The largest contract has been awarded by Tata Main Hospital for Integrated Facility Management & Porter Services at a 1,000-bedded NABH-accredited hospital, where the company will deploy approximately 750 trained manpower, supported by technology-enabled systems, structured operational processes, and compliance with NABH standards, ISO management systems, and statutory requirements. This contract is for a period of 33 months with a total value of ₹43.51 crore (exclusive of GST)

In addition, Sindoori Management Solutions has received a facility management services contract from the Department of Personnel, Government of Rajasthan Secretariat, under which it will deploy and manage 154 trained personnel to ensure smooth, efficient, and uninterrupted facility operations, with focus on operational efficiency, cleanliness, hygiene, and safety, following structured SOPs aligned with government regulations and best practices. This contract is valid for 2 years and has a value of ₹5.22 crore (exclusive of GST)

The third contract has been awarded by Overseas Manpower Corporation Limited, Chennai, for outsourcing of manpower, involving deployment and management of 22 suitable categories of workforce across Chennai Zone 1B and different locations in Tamil Nadu. This contract is for a one-year period with a value of ₹15.56 crore (exclusive of GST). The aggregate value of orders received would amount to Rs. ~64 Crores 

The shares of this company is majorly engaged in the business of managing food outlets at institutions, which includes hospitals, clinical nutrition, facilities management and outsourcing services. The company  offers Integrated Facility Management Services which includes 

Housekeeping Services, Pest Control, Technical Services,Landscaping, Repairs & Maintenance.The company also offers Airport Operations & Maintenance Services which includes  Facility Cleaning & Upkeep, Baggage Handling Services, Escalator & Conveyor System Maintenance, Runway & Airfield Maintenance, Aircraft & Aviation Equipment Repairs.

With this it also offers Biomedical Engineering Maintenance Services which includes Healthcare equipments Repairs & Maintenance, Hazardous / Contaminated Equipment Handling, Technical Advisory Services, Calibration of Medical Equipment, PCB Repair & Battery Assembly Services. 

Year-on-Year analysis: Revenue from operations has increased from Rs. 135 Crores to Rs. 149.6 Crores, up 10.8 percent. Operating profit has increased from Rs. 5.63 Crores to Rs. 6.34 Crores, up 12.6 percent and net-profit has increased from Rs. 2.22 Crores to Rs. 3.09 Crores, up 39 percent 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 138.28 Crores to Rs. 149.63 Crores, up 8.2 percent. Operating profit has increased from Rs. 4.98 Crores to 6.34 Crores, up 27 percent and Net profit has decreased from Rs. 3.95 Crores to 3.09 crores, down 21.7 percent 

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