SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Savera Industries Ltd

BSE: 512634 NSE: SAVERA ISIN: INE104E01014
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Savera Industries Ltd belong to?
Savera Industries Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Savera Industries Ltd a good quality company?
Savera Industries Ltd is a good quality company, based on a consistently good 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 Savera Industries Ltd undervalued or overvalued?
Savera Industries 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 11.8 11.54
Price to Book 1.94 1.54
Price to Sales 1.94 2.06
EV to EBITDA 6.78 8.56
Q.4 Is Savera Industries Ltd a good buy now?
Savera Industries 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 Savera Industries Ltd?
Savera Industries Ltd revenue growth is 10.4% for FY-2025, which is above its 5-year CAGR of 3.44%, indicating faster growth.

Q.2 Gross Profit margin of Savera Industries Ltd?
Savera Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.8% for FY-2025, which is in line with its 5-year median of 22%, indicating stable margins.

Q.3 Operating Profit Margin of Savera Industries Ltd?
Savera Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.69% for FY-2025, which is in line with its 5-year median of 18.34% indicating stable margins.

Q.4 Net Profit Margin of Savera Industries Ltd?
Savera Industries Ltd Net Profit Margin is 16.62% for FY-2025, is above its 5-year median of 14.28%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22.8 22
Operating Profit Margin (%) 18.69 18.34
Net Profit Margin (%) 16.62 14.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Savera Industries Ltd?
Savera Industries Ltd Return on Asset is 13.13%, which is above its 5-year historical median of 11.54%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Savera Industries Ltd?
Savera Industries Ltd Return on capital employed is 19.63% for FY-2025, which is above its 5-year historical median of 17.83%. 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 Savera Industries Ltd?
Savera Industries Ltd Return on equity is 15.92% for FY-2025, which is above its 5-year historical median of 13.83%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Savera Industries Ltd?
Savera Industries Ltd Cash conversion cycle is -7 days, below its 5-year historical median of -1 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) 0.79 0.79
ROE (%) 15.92 13.83
ROCE (%) 19.63 17.83
Cash Conversion Cycle -7 days -1 days

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

Q.9 Debt to Equity ratio of Savera Industries Ltd?
Savera Industries Ltd Debt-to-Equity ratio is 0.02, 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 Savera Industries Ltd?
Savera Industries Ltd Debt to cash flow from operations is 0.15, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Savera Industries Ltd?

Q.1 Promoter shareholding and pledge status of Savera Industries Ltd?
Promoters hold 64.62% of the Savera Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Savera Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Savera Industries Ltd vs industry peers?
Savera Industries Ltd revenue CAGR is 3.44%, compared to the industry median CAGR of 3.58%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10.4 3.6
Gross Profit Growth (%) 12.5 15.6
Operating Profit Growth (%) 15.4 13.5
Net Profit Growth (%) 30 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.79 0.27
ROE (%) 15.92 2.92
ROCE (%) 19.63 6.09
Cash Conversion Cycle (days) -6.67 -

Valuation & price assessment

Q.1 Stock return of Savera Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
8.7% 28.5% 35% 13.9%
Q.2 Valuation ratios of Savera Industries Ltd vs historical?
The current P/E ratio of 11.8 is in line with than its historical median of 11.54, indicating that the stock is trading near 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 11.8 11.54 32.28
Price to Book 1.94 1.54 1.81
Price to Sales 1.94 2.06 5.80
EV to EBITDA 6.78 8.56 17.25

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: