Ikeja hotels is listed under the Hotel and Tourism Sector of the Nigerian Stock Exchange along with the Tourist Company of Nigeria. It was first incorporated in 1972 as Properties Development Limited and later changed its name to Ikeja Hotels in 1980.
The company released its first quarter results for the period ended March 2008 on the floor of the Nigerian Stock Exchange recently. It grew its turnover by 18.03% from N1.32 billion to N1.558 billion. There was an increase of profit before tax from N272 million to N380 million, which is equated to a 39.71% increase. Profit after tax was grown by 39.46% from N185 million to N258 million. This corresponds to a profit margin of 19.55% which is not bad.
Based on this result and an outstanding 1.73 billion shares in issue, Ikeja Hotels has an earning per share of 15K, which if extrapolated would give a year end forecast earning per share of 60K. At the current price of N8.13, its forward price earning ratio will come to 13.55x. This places its fair value at about N13.20 meaning that this company is presently selling at a 62% discount.
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