Check Before You Invest : Valencia India Ltd

Snapshot

Q.1 Which industry/sub-sector does Valencia India Ltd belong to?

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

Q.2 Is Valencia India Ltd a good quality company?

Valencia India Ltd is a quality company, based on a 4-year financial track record.

Q.3 Is Valencia India Ltd undervalued or overvalued?

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

Q.4 Is Valencia India Ltd a good buy now?

Valencia India 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

Q.1 Revenue growth of Valencia India Ltd?

Valencia India Ltd revenue growth is 8% for FY-2025, which is below its 3-year CAGR of 22.38%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Valencia India Ltd?

Valencia India Ltd Return on capital employed is 22.25% for FY-2025, which is below its 3-year historical median of 26%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Valencia India Ltd?

Valencia India Ltd Return on Asset is 13.32%, which is in line with its 3-year historical median of 13.32%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Valencia India Ltd?

Valencia India Ltd Return on equity is 20.58% for FY-2025, which is below its 3-year historical median of 35.15%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Valencia India Ltd?

Valencia India Ltd Cash conversion cycle is -1 days, above its 3-year historical median of -14 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.48	0.78
ROE	20.58	35.15
ROCE	22.25	26
Cash Conversion Cycle	-1 days	-14 days

Q.6 Gross Profit margin of Valencia India Ltd?

Valencia India Ltd Gross profit margin which is the profit after deduction of direct costs, is 43.1% for FY-2025, which is above its 3-year median of 37.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Valencia India Ltd?

Valencia India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 46.71% for FY-2025, which is above its 3-year median of 41.82% indicating increasing margins.

Q.8 Net Profit Margin of Valencia India Ltd?

Valencia India Ltd Net Profit Margin is 27.52% for FY-2025, is above with its 3-year median of 25.88%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	43.1	37.5
Operating Profit Margin	46.71	41.82
Net Profit Margin	27.52	25.88

Q.9 Debt to Equity ratio of Valencia India Ltd?

Valencia India Ltd Debt-to-Equity ratio is 0.53, 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 Valencia India Ltd?

Valencia India Ltd Debt to cash flow from operations is 1.85, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Valencia India Ltd?

Promoters hold 60.00% of the Valencia India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Valencia India Ltd vs industry peers?

Valencia India Ltd revenue CAGR is 22.38%, compared to the industry median CAGR of 25.65%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	8	25.7
Gross Profit Growth	24	29.4
Operating Profit Growth	20.9	26.5
Net Profit Growth	14.7	NAN

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.48	0.39
ROE	20.58	7.66
ROCE	22.25	10.45
Cash Conversion Cycle (days)	-1.48	-11

Valuation & price assessment

Q.1 Stock return of Valencia India 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 Valencia India Ltd vs historical?

The current P/E is lower 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	11.32	12.72	32.80
Price to Book	0.37	0.42	2.00
Price to Sales	3.12	3.50	5.68
EV to EBITDA	7.64	8.47	16.30

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