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Check Before You Invest : Graviss Hospitality Ltd

BSE: 509546 NSE: GRAVISSHO ISIN: INE214F01026
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Graviss Hospitality Ltd belong to?
Graviss Hospitality Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Graviss Hospitality Ltd a good quality company?
Graviss Hospitality Ltd is a weak quality company, based on a inconsistent 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 Graviss Hospitality Ltd undervalued or overvalued?
Graviss Hospitality Ltd appears Fair, as its key valuation ratios are in line with 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 63.68 42.80
Price to Book 0.95 1.14
Price to Sales 3.37 5.61
EV to EBITDA 17.13 28.21
Q.4 Is Graviss Hospitality Ltd a good buy now?
Graviss Hospitality 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 Graviss Hospitality Ltd?
Graviss Hospitality Ltd revenue growth is 4.2% for FY-2025, which is below its 5-year CAGR of 7.41%, indicating slower growth.

Q.2 Gross Profit margin of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.3% for FY-2025, which is above its 5-year median of 16.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.03% for FY-2025, which is above its 5-year median of 15.97% indicating increasing margins.

Q.4 Net Profit Margin of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Net Profit Margin is 21.13% for FY-2025, is above its 5-year median of 7.7%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.3 16.2
Operating Profit Margin (%) 18.03 15.97
Net Profit Margin (%) 21.13 7.7

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Return on Asset is 5.05%, which is above its 5-year historical median of 1.83%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Return on capital employed is 2.78% for FY-2025, which is in line with its 5-year historical median of 2.78%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Return on equity is 6.01% for FY-2025, which is above its 5-year historical median of 2.19%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Cash conversion cycle is -25 days, below its 5-year historical median of -22 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) 0.24 0.24
ROE (%) 6.01 2.19
ROCE (%) 2.78 2.78
Cash Conversion Cycle -25 days -22 days

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

Q.9 Debt to Equity ratio of Graviss Hospitality Ltd?
Graviss Hospitality Ltd Debt-to-Equity ratio is 0.01, 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 Graviss Hospitality Ltd?
Graviss Hospitality Ltd Debt to cash flow from operations is 0.75, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Graviss Hospitality Ltd?

Q.1 Promoter shareholding and pledge status of Graviss Hospitality Ltd?
Promoters hold 74.92% of the Graviss Hospitality Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Graviss Hospitality Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Graviss Hospitality Ltd vs industry peers?
Graviss Hospitality Ltd revenue CAGR is 7.41%, 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 (%) 4.2 3.6
Gross Profit Growth (%) 11.1 15.6
Operating Profit Growth (%) 11.1 13.5
Net Profit Growth (%) 200 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.24 0.27
ROE (%) 6.01 2.92
ROCE (%) 2.78 6.09
Cash Conversion Cycle (days) -24.84 -

Valuation & price assessment

Q.1 Stock return of Graviss Hospitality Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
3.9% 16.4% -2% -35.1%
Q.2 Valuation ratios of Graviss Hospitality Ltd vs historical?
The current P/E ratio of 63.68 is higher than its historical median of 42.80, indicating that the stock is trading above 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 63.68 42.80 32.28
Price to Book 0.95 1.14 1.81
Price to Sales 3.37 5.61 5.80
EV to EBITDA 17.13 28.21 17.25

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