Multibagger hotel stock rallies to hit record high, up 170% in a year

Shares of Speciality Restaurants Ltd rallied more than 11% to hit a new high of ₹282 apiece on the BSE in Tuesday's trading session ahead of its Extraordinary General Meeting (EGM) which is scheduled to be held this week on Wednesday, January 18, 2023. The stock has been in upward movement since the past few days and has surged over 22% in the last one month.

In November last year, the board of directors of the company had approved the issue of 6 million (60,00,000) warrants, each convertible into, or exchangeable for, one equity share of the company at a price of ₹212.05 each, aggregating up to ₹127.23 crore to allottees other than promoters on a preferential basis, which is subject to necessary approval of the shareholders of the Company at the ensuing Extraordinary General Meeting and other regulatory authorities, as may be applicable.

“For obtaining the approval of the shareholders of the Company for the aforementioned matters, the Board of Directors of the Company have decided to hold an EGM of the Company on Wednesday, January 18, 2023 at 11:00 a.m. at venue Kala Mandir, 48, Shakespeare Sarani, Kolkata - 700017 and have approved the draft notice of the EGM and matters related thereto to be issued to the shareholders for convening the EGM,” the company had said in the exchange filing.

Speciality Restaurants shares have given multibagger return of about 171% in a year's period. The hotel stock is up over 86% in the last six months period as compared to 11% rise in benchmark BSE Sensex during the period. Speciality Restaurants Limited owns multiple chains of fine and casual dining restaurants with brands including Mainland China, Oh! Calcutta, Hoppipola among others. For the second quarter ended September 2022 of the current fiscal or Q2 FY23, its consolidated net profit rose to ₹11 crore whereas its revenue was up 52% to ₹94 crore as compared to the same quarter a year ago.