Check Before You Invest : Suba Hotels Ltd

Snapshot

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

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

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

Suba Hotels Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Suba Hotels Ltd undervalued or overvalued?

Suba Hotels Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

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

Suba Hotels Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Suba Hotels Ltd?

Suba Hotels Ltd revenue growth is 35.9% for FY-2024, which is below its 3-year CAGR of 130.63%, indicating slower growth.

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

Suba Hotels Ltd Return on capital employed is 8.59% for FY-2024, which is in line with its 3-year historical median of 8.59%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Suba Hotels Ltd?

Suba Hotels Ltd Return on Asset is 5.63%, which is above its 3-year historical median of 4.79%, indicating improved asset utilization efficiency.

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

Suba Hotels Ltd Return on equity is 19.62% for FY-2024, which is above its 3-year historical median of 18.46%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Suba Hotels Ltd?

Suba Hotels Ltd Cash conversion cycle is -64 days, in line with its 3-year historical median of -64 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.52	0.44
ROE	19.62	18.46
ROCE	8.59	8.59
Cash Conversion Cycle	-64 days	-64 days

Q.6 Gross Profit margin of Suba Hotels Ltd?

Suba Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 22% for FY-2024, which is in line with its 3-year median of 22%, indicating stable margins.

Q.7 Operating Profit Margin of Suba Hotels Ltd?

Suba Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.3% for FY-2024, which is in line with its 3-year median of 21.3% indicating stable margins.

Q.8 Net Profit Margin of Suba Hotels Ltd?

Suba Hotels Ltd Net Profit Margin is 10.88% for FY-2024, is in line with with its 3-year median of 10.88%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	22	22
Operating Profit Margin	21.3	21.3
Net Profit Margin	10.88	10.88

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

Suba Hotels Ltd Debt-to-Equity ratio is 1.51, which is above with the industry average of 0.16, indicating higher debt levels in the industry.

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

Suba Hotels Ltd Debt to cash flow from operations is 4.9, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 60.93% of the Suba Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Suba Hotels Ltd revenue CAGR is 130.63%, compared to the industry median CAGR of 25.65%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	35.9	25.7
Gross Profit Growth	11.1	29.4
Operating Profit Growth	11.1	26.5
Net Profit Growth	25	NAN

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.52	0.39
ROE	19.62	7.66
ROCE	8.59	10.45
Cash Conversion Cycle (days)	-64.35	-11

Valuation & price assessment

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

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

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

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	69.78	64.14	32.80
Price to Book	-	-	2.00
Price to Sales	7.59	6.98	5.68
EV to EBITDA	37.28	34.59	16.30

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