How This 1 Tata-Backed Smallcap Stock Made Investors Crorepati In Long-Term? All-Time Gains 8,147%!

When talking about popular Tata Group-backed stocks, many names would pop off such as the flagship arm TCS which is the largest tech giant in India in terms of market share. Or perhaps the auto lead Tata Motors, or the steel major Tata Steel, power-packed Tata Powers, and even Titan, The Indian Hotels, and the list goes on! But there is one company, a smallcap, backed by Tata Group and has emerged as a multibagger in 2023. If triple-digit isn't enough, this smallcap all-time gains are overwhelming, journing from a mere Rs 100 to even flirting over the Rs 8,000 mark. This small-cap stock has also made many investors rich rich in its long-run!

This smallcap is called Benares Hotels, and as the name suggests it is in the business of hotels and resorts.

On December 20th, the stock touched an intraday high of Rs 8,799 apiece before ending in red at Rs 7,999.95 apiece down by 2.5% on BSE. The company has a market cap of Rs 1,040 crore. It is only listed on BSE!

This stock last week touched a new 52-week high of Rs 8,903 apiece.

And it is currently up by 216.5% from its 52-week low of Rs 2,528 apiece despite the latest bearish endings.

Not just that Benares' six-monthly upside is at least 80.5%, and year-to-date gains are over 196.5% as of now. In a year, the stock has rallied by as much as 184%, and in 5 years, the returns are just remarkable to the tune of over 508%. But its all-time gains are extraordinary by Rs 7,902.95 or 8,147.37% from its late-1995 levels.

As per the data, Benares was once below Rs 100 levels in mid-July of 1995. The journey to crossing the Rs 1000 mark was slower and longer and it did take place in 2014. The journey to Rs 2,000 levels and above saw a similar pattern, but it was only in 2023 that this stock shot up to sky-high levels in a blink!

A year ago, the stock was just Rs 2,697.75 apiece at the start of January, and it has now risen by Rs 5,302.2 taking into consideration the current market price, and
by a huge Rs 6,205.25 if taken into consideration its all-time high of Rs 8,903.

How has investors' wealth risen in Benares?

If you invested Rs 1.5 lakh in Benaras a year ago, then your investment value jumps to over Rs 4.26 lakh. But if you invested Rs 1.5 lakh at the start of 2023, then your investment value rises to nearly Rs 4.45 lakh. But if the same amount was invested 5 years ago, by now your investment value would have jumped to over RS 9.12 lakh. But those investors who pumped in Rs 1.5 lakh for shares of Benaras, are sitting on over 1 crore worth portfolio. This same Rs 1.5 lakh investment, has risen to over Rs 1.23 crore corpus since late-1995 to the current price level. The growth is even higher if compared to the 52-week high zones!

Before May 2011, Benares was lesser known. But in May, it became a subsidiary of The Indian Hotels Company Limited, a company promoted by Tata Sons Private Limited. Benares gained attention with its new hotel branch under the Indian Hotels, namely Taj Ganges and Taj Nadesar Palace in Varanasi, followed by the rebranding of its The Gateway Hotel in Maharashtra to Ginger Hotel.

As of now, as per its website, Benares Hotels is a listed public limited company incorporated in 1971. The Company operates its hotels, viz. Taj Ganges and Nadesar Palace in Varanasi and Ginger Hotel, Gondia in Maharashtra. The Company became a subsidiary of The Indian Hotels Company Limited in 2011. While Taj Ganges and Nadesar Palace at Varanasi has 144 rooms and suits, Ginger Hotel at Gondia has 34 rooms.

Meanwhile, as per the shareholding pattern as of September 30, 2023, Indian Hotels owns majority stake to the tune of 6,43,825 equity shares or 49.53% in Benares.

As per Trendlyne data, the verticles for Benares stocks are all in green. There are no REDS! Some of the key highlights from the data!

- Stock price outperformed its sector by 156.31% in the past year.

The debt to Equity Ratio is zero as the company is debt-free.

- Promoter Share Holding stayed the same in the most recent quarter at 62.57%.

- Promoter Pledges are zero.

- Return on Equity(ROE) for the last financial year was 23.43%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.

- Interest Coverage Ratio is 102.42, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Price to Earning Ratio is 35.84, lower than its sector PE ratio of 84.79.

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