INDIAN HOTELS Stay invested and buy at every major dip

Indian Hotels- Taj Hotels. results, for first quarter, posted a 73% (YoY) drop in net profit at Rs.16.44 crore, as expected due to slowdown and terror attack. Total revenue dropped 24% at Rs.284.88 crore. Closure of 287 rooms in the Palace wing of the hotel, which was widely damaged during the terror attacks, also affected the performance quite sharply. These rooms are currently undergoing renovation. Its average room occupancy at present is around 70%.
The market had expected a much poorer performance and hence the price remained stable. Also, the growing perception is that the worst possible time is behind for the hospitality industry. One could see a recovery happening in the sector after second half of current fiscal.
Still here are some good reasons to Stay invested and buy at every major dip
The company's total borrowings, as at 31st March 2009 stood at Rs.1,766.47 crore, up from Rs 1,134.18 crore in previous year. 
1. The increase in debt was on account of ongoing capital expenditure on new projects as well as renovations and investment in global arms.
2. The company is now looking at raising money through either more debt or through an equity issue. The amount raised is to be used for setting up 45 hotels, which includes an addition of more than 7,200 rooms over the next four years, right across all of its existing brands such as Taj, Gateway, Vivanta by Taj and Ginger.
3. The capex plan for FY10 is at Rs.350 crore. And it is this will to go on; despite the slowdown and financial turmoil the stock remained so strong. Stay invested and buy at every major dip. thanks