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Check Before You Invest : Benares Hotels Ltd

BSE: 509438 NSE: ISIN: INE664D01019
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Benares Hotels Ltd belong to?
Benares Hotels Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Benares Hotels Ltd a good quality company?
Benares Hotels Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Benares Hotels Ltd undervalued or overvalued?
Benares Hotels Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Benares Hotels Ltd a good buy now?
Benares Hotels 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

Q.1 Revenue growth of Benares Hotels Ltd?
Benares Hotels Ltd revenue growth is 12.4% for FY-2025 , which is below its 5 year CAGR of 16.3% , indicating slower growth.
Q.2 Gross Profit margin of Benares Hotels Ltd?
Benares Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 47.4% for FY-2025 , which is above its 5 year median of 40% , indicating increasing margins.
Q.3 Operating Profit Margin of Benares Hotels Ltd?
Benares Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.79% for FY-2025 , which is above its 5 year median of 38.75% indicating increasing margins.
Q.4 Net Profit Margin of Benares Hotels Ltd?
Benares Hotels Ltd Net Profit Margin is 31.93% for FY-2025 , is above with its 5 year median of 25.05%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 47.4 40
Operating Profit Margin 43.79 38.75
Net Profit Margin 31.93 25.05
Q.5 Return on Asset of Benares Hotels Ltd?
Benares Hotels Ltd Return on Asset is 24.61%, which is above its 5 year historical median of 21.71%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Benares Hotels Ltd?
Benares Hotels Ltd Return on equity is 28.29% for FY-2025 , which is above its historical median of 26.33%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Benares Hotels Ltd?
Benares Hotels Ltd Return on capital employed is 38.27% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Benares Hotels Ltd?
Benares Hotels Ltd Cash conversion cycle is -23 days, below its historical median of -19 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.77 0.77
ROE 28.29 26.33
ROCE 38.27 35.64
Cash Conversion Cycle -23 days -19 days
Q.9 Debt to Equity ratio of Benares Hotels Ltd?
Benares Hotels Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.09 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Benares Hotels Ltd?
Benares Hotels Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Benares Hotels Ltd?
Promoters hold 62.58% of the Benares Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Benares Hotels Ltd vs industry peers?
Benares Hotels Ltd revenue CAGR is 16.31% , compared to the industry median CAGR of 3.58% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 135.5 44.4
Gross Profit 64 5.5
Operating Profit 59 5.6
Net Profit 43 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.77 0.28
ROE 28.29 3.09
ROCE 38.27 6.11
Cash Conversion Cycle (days) -22.71 -

Valuation & price assessment

Q.1 Stock return of Benares Hotels Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 25.2% 51.2% 39% -9.6%
Q.3 Valuation ratios of Benares Hotels Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 29.34 0.00 37.08
Price to Book 6.53 1.12 1.71
Price to Sales 9.23 3.52 5.24
EV to EBITDA 18.47 13.55 17.33

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