Juniper Hotels IPO Financial Analysis

Juniper Hotels started its operations in 1985 under the name 'Seajuli Finance Private Limited.' It is a major player in luxury hotel development and ownership, holding the title for owning the most Hyatt hotels in India in terms of the number of rooms. Juniper Hotels is set to launch its IPO on 21 February 2024. Here's a summary of the company's business model, strengths, risks and financials to assist investors in making informed decisions.

Juniper Hotels IPO Overview

Juniper Hotels established in 1985 is a luxury hotel development and ownership company in India co-owned by Saraf Hotels Ltd and Two Seas Holdings Ltd an affiliate of Hyatt Hotels Corporation. With 7 hotels and serviced apartments across Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi, Juniper Hotels boasts a total capacity of 1,836 rooms. Their portfolio includes 549 rooms and 116 serviced apartments at Grand Hyatt Mumbai, 401 rooms at ANDAZ Delhi, 129 serviced apartments at Hyatt Delhi Residences, 211 rooms at Hyatt Regency Ahmedabad, 206 rooms at Hyatt Regency Lucknow, 105 rooms at Hyatt Raipur and 119 rooms at Hyatt Place, Hampi.

Get more details about Juniper Hotels IPO in this article.

Juniper Hotels IPO Strengths

1. The company has expanded into major cities like Delhi and Mumbai, as well as emerging business hubs like Ahmedabad, Lucknow, and Raipur and popular tourist spots like Hampi.

2. The Saraf Group and Hyatt have been working together for more than 40 years ever since the first Hyatt hotel opened in India. This long standing partnership has helped both sides understand each other's goals well.

3. From 2023 to 2027 hotel demand will likely exceed supply indicating growth opportunities for existing asset owners.

4. Experienced and qualified management team.

Juniper Hotels IPO Risk

1. The company and its subsidiary have faced past losses and may need to provide funding for their operations in the future. If investments in the subsidiaries fail it could pose additional liabilities and negatively impact the business.

2. Most of the company's revenue (90.48% in H1FY24) comes from three hotels/serviced apartments in Mumbai and New Delhi. Any negative changes affecting these properties could harm the business.

3. Juniper Hotels has recorded negative operating cash flows in the past.

4. Its business is affected by seasonal and cyclical changes which can lead to ups and downs in its earnings and cash flow.

Juniper Hotels IPO Details

Juniper Hotels IPO is scheduled from 21 to 23 February 2024. It has a face value of ₹10 per share and the IPO's price band is ₹342 - ₹360 per share.

Financial Performance of Juniper Hotels IPO

Juniper Hotels' profit after tax was -199.49 crore rupees in 2021, -188.03 crore rupees in 2022, and -1.50 crore rupees in 2023 showing bigger losses in the first two years and a smaller loss in the third year.

Juniper Hotels IPO Key Ratios

In the fiscal years ending in 2021, 2022, and 2023 Juniper Hotels had Return on Equity percentages of -36.68%, -52.76% and -0.42% respectively means the company's profits didn't cover its shareholders' investments during these years. However, there was a slight improvement in ROE from 2022 to 2023 though it remained negative.

Juniper Hotels IPO Vs Peers

Compared to its competitors Juniper Hotels has the lowest earnings per share (EPS) of -0.1 while Chalet Hotels boasts the highest EPS of 8.94. A higher EPS is considered more favorable.

Promoters of Juniper Hotels IPO

1. Arun Kumar Saraf.

2. Saraf Hotels Limited.

3. Two Seas Holdings Limited

4. Juniper Investments Limited.

Juniper Hotels was promoted by Arun Kumar Saraf, Saraf Hotels Ltd, Two Seas Holdings Ltd and Juniper Investments Ltd. Currently, the promoters hold 100% ownership but this will decrease to 77.53% after the IPO.

Final Words

This article takes a closer look into Juniper Hotels IPO scheduled for subscription from 21 February 2024. It suggests that potential investors thoroughly review the company's details, financials and subscription status before applying for the IPO