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Check Before You Invest : Ajwa Fun World & Resort Ltd

BSE: 526628 NSE: ISIN: INE863E01015
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Ajwa Fun World & Resort Ltd belong to?
Ajwa Fun World & Resort Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Ajwa Fun World & Resort Ltd a good quality company?
Ajwa Fun World & Resort Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ajwa Fun World & Resort Ltd undervalued or overvalued?
Ajwa Fun World & Resort Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 0.43 0.66
Price to Book 0.45 -5.98
Price to Sales 32.27 6.94
EV to EBITDA 0.51 20.87
Q.4 Is Ajwa Fun World & Resort Ltd a good buy now?
Ajwa Fun World & Resort Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd revenue growth is 5.1% for FY-2025, which is below its 5-year CAGR of 6.62%, indicating slower growth.

Q.2 Gross Profit margin of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.7% for FY-2025, which is above its 5-year median of 11.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.93% for FY-2025, which is above its 5-year median of -0.83% indicating increasing margins.

Q.4 Net Profit Margin of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Net Profit Margin is 11.07% for FY-2025, is above its 5-year median of 4.14%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 38.7 11.8
Operating Profit Margin (%) 24.93 -0.83
Net Profit Margin (%) 11.07 4.14

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Return on Asset is 3.06%, which is above its 5-year historical median of 1.71%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Return on capital employed is 14.2% for FY-2025, which is above its 5-year historical median of 12.51%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -24.2%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Cash conversion cycle is -1342 days, below its 5-year historical median of -405 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.28 0.28
ROE (%) - -24.2
ROCE (%) 14.2 12.51
Cash Conversion Cycle -1342 days -405 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Debt-to-Equity ratio is -2.39, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ajwa Fun World & Resort Ltd?
Ajwa Fun World & Resort Ltd Debt to cash flow from operations is 0.67, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ajwa Fun World & Resort Ltd?

Q.1 Promoter shareholding and pledge status of Ajwa Fun World & Resort Ltd?
Promoters hold 49.54% of the Ajwa Fun World & Resort Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ajwa Fun World & Resort Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ajwa Fun World & Resort Ltd vs industry peers?
Ajwa Fun World & Resort Ltd revenue CAGR is 6.62%, compared to the industry median CAGR of 3.58%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 5.1 3.6
Gross Profit Growth (%) 250 15.6
Operating Profit Growth (%) 45.7 13.5
Net Profit Growth (%) 172.7 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.28 0.27
ROE (%) - 2.92
ROCE (%) 14.2 6.09
Cash Conversion Cycle (days) -1341.77 -

Valuation & price assessment

Q.1 Stock return of Ajwa Fun World & Resort Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.4% 40% 24.8% 23.2%
Q.2 Valuation ratios of Ajwa Fun World & Resort Ltd vs historical?
The current P/E ratio of 0.43 is lower than its historical median of 0.66, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 0.43 0.66 32.28
Price to Book 0.45 -5.98 1.81
Price to Sales 32.27 6.94 5.80
EV to EBITDA 0.51 20.87 17.25

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