Business Details
Ras resorts and Apart Hotels is in Hospitality sector. The Company has a resort in Ras resorts on banks of river Daman Ganga which is located mid way between Industrial town Surat and financial capital of India Mumbai
So strategically the location of resort is very good. It is also affiliated to Resorts Condominium International U.S.A. (RCI), thereby giving you an option to enjoy worldwide holidays.
It has Four Star Category of Hotel of International Standards at Silvassa, Union Territory of Dadra and Nagar Haveli.
Stock Performance
Above is long term price performance of the Company.If you see above long term chart then it has given ten times return. But majority of that price action has occurred between year 2002 and 2008.
Over last one decade it is range bound with price swinging between 20 and 40 mark. So this is not long term investment grade stock.
My Opinion
Ras resorts and Apart limited has taken very cautious approach. The Company has one well located resort between Mumbai and Surat with excellent facilities. That resort is main revenue source of the Company.
It has not come up with new hotels or resort which is very much required for next phase of growth. This cautious approach of the Company is very much reflected in the stock price.
The good part is cautious approach helped Company keep the balance sheet stable. Investors have not lost money in this counter as well but they have not made any money in last one decade.
The Company also does not pay any dividend despite reporting profit which is questionable. I would not suggest investing in these type of Companies by retail investors.