Check Before You Invest : Leela Palaces Hotels & Resorts Ltd

Q: Which industry/sub-sector does Leela Palaces Hotels & Resorts Ltd belong to?

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

Q: Is Leela Palaces Hotels & Resorts Ltd a good quality company?

Leela Palaces Hotels & Resorts 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: Is Leela Palaces Hotels & Resorts Ltd undervalued or overvalued?

Leela Palaces Hotels & Resorts Ltd appears 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: 51.21, Historic Median: 417.61. Price to Book, Current: 1.56, Historic Median: 1.55. Price to Sales, Current: 32.28, Historic Median: 38.11. EV to EBITDA, Current: 32.79, Historic Median: 50.46

Q: Is Leela Palaces Hotels & Resorts Ltd a good buy now?

Leela Palaces Hotels & Resorts 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

Q: Gross Profit margin of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.8% for FY-2025, which is above its 3-year median of 3.8%, indicating increasing margins.

Q: Operating Profit Margin of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 46.74% for FY-2025, which is in line with its 3-year median of 46.74% indicating stable margins.

Q: Net Profit Margin of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Net Profit Margin is 9.13% for FY-2025, is above its 3-year median of -3.99%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 22.8, Historic Median: 3.8. Operating Profit Margin (%), Current: 46.74, Historic Median: 46.74. Net Profit Margin (%), Current: 9.13, Historic Median: -3.99

Q: Return on Asset of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Return on Asset is 0.69%, which is above its 3-year historical median of -0.7%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Return on capital employed is 5.27% for FY-2025, which is below its 3-year historical median of 8.31%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q: Debt to Equity ratio of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Debt-to-Equity ratio is 0.22, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Check Before You Invest : Leela Palaces Hotels & Resorts Ltd

Snapshot

Q.1 Which industry/sub-sector does Leela Palaces Hotels & Resorts Ltd belong to?

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

Q.2 Is Leela Palaces Hotels & Resorts Ltd a good quality company?

Leela Palaces Hotels & Resorts 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 Leela Palaces Hotels & Resorts Ltd undervalued or overvalued?

Leela Palaces Hotels & Resorts Ltd appears 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	3-year Historic Median
Price to Earnings	51.21	417.61
Price to Book	1.56	1.55
Price to Sales	32.28	38.11
EV to EBITDA	32.79	50.46

Q.4 Is Leela Palaces Hotels & Resorts Ltd a good buy now?

Leela Palaces Hotels & Resorts 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

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.

Q.1 Gross Profit margin of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.8% for FY-2025, which is above its 3-year median of 3.8%, indicating increasing margins.

Q.2 Operating Profit Margin of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 46.74% for FY-2025, which is in line with its 3-year median of 46.74% indicating stable margins.

Q.3 Net Profit Margin of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Net Profit Margin is 9.13% for FY-2025, is above its 3-year median of -3.99%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	22.8	3.8
Operating Profit Margin (%)	46.74	46.74
Net Profit Margin (%)	9.13	-3.99

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Return on Asset is 0.69%, which is above its 3-year historical median of -0.7%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Return on capital employed is 5.27% for FY-2025, which is below its 3-year historical median of 8.31%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

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

Q.6 Debt to Equity ratio of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Debt-to-Equity ratio is 0.22, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.7 Debt to cash flow from operations of Leela Palaces Hotels & Resorts Ltd?

Leela Palaces Hotels & Resorts Ltd Debt to cash flow from operations is 10.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Leela Palaces Hotels & Resorts Ltd?

Q.1 Promoter shareholding and pledge status of Leela Palaces Hotels & Resorts Ltd?

Promoters hold 75.91% of the Leela Palaces Hotels & Resorts Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Leela Palaces Hotels & Resorts Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Leela Palaces Hotels & Resorts Ltd vs industry peers?

Leela Palaces Hotels & Resorts Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 24.39%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	24.4
Gross Profit Growth (%)	608.3	31.7
Operating Profit Growth (%)	13.6	38.8
Net Profit Growth (%)	0	35.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	0.08	0.35
ROE (%)	-	6.03
ROCE (%)	5.27	10.22
Cash Conversion Cycle (days)	-44.57	-9

Valuation & price assessment

Q.1 Stock return of Leela Palaces Hotels & Resorts Ltd over the last decade?

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

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

Q.2 Valuation ratios of Leela Palaces Hotels & Resorts Ltd vs historical?

The current P/E ratio of 51.21 is lower than its historical median of 417.61, indicating that the stock is trading below its historical average valuation.

Q.3 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	51.21	417.61	32.85
Price to Book	1.56	1.55	2.01
Price to Sales	32.28	38.11	5.68
EV to EBITDA	32.79	50.46	16.88

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Check Before You Invest : Leela Palaces Hotels & Resorts 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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