Check Before You Invest : Robust Hotels Ltd

Snapshot

Q.1 Which industry/sub-sector does Robust Hotels Ltd belong to?

Robust Hotels Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.

Q.2 Is Robust Hotels Ltd a good quality company?

Robust Hotels Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Robust Hotels Ltd undervalued or overvalued?

Robust Hotels Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Robust Hotels Ltd a good buy now?

Robust Hotels Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Robust Hotels Ltd?

Robust Hotels Ltd revenue growth is 11.3% for FY-2025, which is above its 5-year CAGR of 8%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Robust Hotels Ltd?

Robust Hotels Ltd Return on capital employed is 4.43% for FY-2025, which is above its 5-year historical median of 2.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Robust Hotels Ltd?

Robust Hotels Ltd Return on Asset is 1.92%, which is above its 5-year historical median of 0.58%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Robust Hotels Ltd?

Robust Hotels Ltd Return on equity is 2.32% for FY-2025, which is above its 5-year historical median of 0.68%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Robust Hotels Ltd?

Robust Hotels Ltd Cash conversion cycle is -71 days, below its 5-year historical median of 15 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	0.16	0.15
ROE	2.32	0.68
ROCE	4.43	2.22
Cash Conversion Cycle	-71 days	15 days

Q.6 Gross Profit margin of Robust Hotels Ltd?

Robust Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.1% for FY-2025, which is above its 5-year median of 13.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Robust Hotels Ltd?

Robust Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.48% for FY-2025, which is above its 5-year median of 27.56% indicating increasing margins.

Q.8 Net Profit Margin of Robust Hotels Ltd?

Robust Hotels Ltd Net Profit Margin is 12.08% for FY-2025, is above with its 5-year median of 3.87%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	29.1	13.3
Operating Profit Margin	31.48	27.56
Net Profit Margin	12.08	3.87

Q.9 Debt to Equity ratio of Robust Hotels Ltd?

Robust Hotels Ltd Debt-to-Equity ratio is 0.22, which is above with the industry average of 0.21, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Robust Hotels Ltd?

Robust Hotels Ltd Debt to cash flow from operations is 2.84, which is at a moderate level.

Ownership & governance

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

Promoters hold 65.63% of the Robust Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Robust Hotels Ltd vs industry peers?

Robust Hotels Ltd revenue CAGR is 8.00%, compared to the industry median CAGR of 7.44%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.3	7.4
Gross Profit Growth	53.9	14.7
Operating Profit Growth	12.5	14.7
Net Profit Growth	220	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.16	0.32
ROE	2.32	4.28
ROCE	4.43	6.32
Cash Conversion Cycle (days)	-70.65	-1

Valuation & price assessment

Q.1 Stock return of Robust Hotels Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 26.34% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	26.3%	-18.5%

Q.3 Valuation ratios of Robust Hotels Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	11.75	22.59	32.23
Price to Book	0.44	0.53	1.82
Price to Sales	2.17	2.59	5.80
EV to EBITDA	6.41	10.56	17.27

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