Check Before You Invest : Pecos Hotels and Pubs Ltd

Q: Which industry/sub-sector does Pecos Hotels and Pubs Ltd belong to?

Pecos Hotels and Pubs Ltd belongs to the Travel & Hospitality sector, operating specifically within the Restaurants segment.

Q: Is Pecos Hotels and Pubs Ltd a good quality company?

Pecos Hotels and Pubs 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: Is Pecos Hotels and Pubs Ltd undervalued or overvalued?

Pecos Hotels and Pubs Ltd appears Somewhat 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. Price to Earnings, Current: 21.98, Historic Median: 11.02. Price to Book, Current: 4.78, Historic Median: 3.48. Price to Sales, Current: 2.98, Historic Median: 2.49. EV to EBITDA, Current: 12.36, Historic Median: 14.41

Q: Is Pecos Hotels and Pubs Ltd a good buy now?

Pecos Hotels and Pubs 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

Q: Revenue growth of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd revenue growth is 8.5% for FY-2025, which is above its 5-year CAGR of 5.4%, indicating faster growth.

Q: Gross Profit margin of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.2% for FY-2025, which is above its 5-year median of 17.5%, indicating increasing margins.

Q: Operating Profit Margin of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.23% for FY-2025, which is above its 5-year median of 16.76% indicating increasing margins.

Q: Net Profit Margin of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Net Profit Margin is 13.55% for FY-2025, is above its 5-year median of 11.97%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.2, Historic Median: 17.5. Operating Profit Margin (%), Current: 18.23, Historic Median: 16.76. Net Profit Margin (%), Current: 13.55, Historic Median: 11.97

Q: Return on Asset of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Return on Asset is 20.59%, which is in line with its 5-year historical median of 20.19%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Return on capital employed is 32.83% for FY-2025, which is in line with its 5-year historical median of 32.32%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Pecos Hotels and Pubs Ltd

BSE: 539273 NSE: ISIN: INE484S01010

| Sector: Travel & Hospitality | Industry: Restaurants

Snapshot

Q.1 Which industry/sub-sector does Pecos Hotels and Pubs Ltd belong to?

Pecos Hotels and Pubs Ltd belongs to the Travel & Hospitality sector, operating specifically within the Restaurants segment.

Q.2 Is Pecos Hotels and Pubs Ltd a good quality company?

Pecos Hotels and Pubs 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 Pecos Hotels and Pubs Ltd undervalued or overvalued?

Pecos Hotels and Pubs Ltd appears Somewhat 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	21.98	11.02
Price to Book	4.78	3.48
Price to Sales	2.98	2.49
EV to EBITDA	12.36	14.41

Q.4 Is Pecos Hotels and Pubs Ltd a good buy now?

Pecos Hotels and Pubs 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 Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd revenue growth is 8.5% for FY-2025, which is above its 5-year CAGR of 5.4%, indicating faster growth.

Q.2 Gross Profit margin of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.2% for FY-2025, which is above its 5-year median of 17.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.23% for FY-2025, which is above its 5-year median of 16.76% indicating increasing margins.

Q.4 Net Profit Margin of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Net Profit Margin is 13.55% for FY-2025, is above its 5-year median of 11.97%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.2	17.5
Operating Profit Margin (%)	18.23	16.76
Net Profit Margin (%)	13.55	11.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Return on Asset is 20.59%, which is in line with its 5-year historical median of 20.19%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Return on capital employed is 32.83% for FY-2025, which is in line with its 5-year historical median of 32.32%. 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 Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Return on equity is 23.58% for FY-2025, which is in line with its 5-year historical median of 22.54%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Cash conversion cycle is -12 days, in line with its 5-year historical median of -12 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.52	1.52
ROE (%)	23.58	22.54
ROCE (%)	32.83	32.32
Cash Conversion Cycle	-12 days	-12 days

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

Q.9 Debt to Equity ratio of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Pecos Hotels and Pubs Ltd?

Pecos Hotels and Pubs Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Pecos Hotels and Pubs Ltd?

Q.1 Promoter shareholding and pledge status of Pecos Hotels and Pubs Ltd?

Promoters hold 69.62% of the Pecos Hotels and Pubs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Pecos Hotels and Pubs Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Pecos Hotels and Pubs Ltd vs industry peers?

Pecos Hotels and Pubs Ltd revenue CAGR is 5.40%, compared to the industry median CAGR of 9.99%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	8.5	10
Gross Profit Growth (%)	19	17.8
Operating Profit Growth (%)	17.8	8.4
Net Profit Growth (%)	23.3	33.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.52	0.85
ROE (%)	23.58	2.11
ROCE (%)	32.83	8.22
Cash Conversion Cycle (days)	-11.85	-26

Valuation & price assessment

Q.1 Stock return of Pecos Hotels and Pubs Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	13.6%	62.4%	27.2%	-1.6%

Q.2 Valuation ratios of Pecos Hotels and Pubs Ltd vs historical?

The current P/E ratio of 21.98 is higher than its historical median of 11.02, 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	21.98	11.02	35.75
Price to Book	4.78	3.48	3.09
Price to Sales	2.98	2.49	2.49
EV to EBITDA	12.36	14.41	15.61

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Check Before You Invest : Pecos Hotels and Pubs Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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