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Check Before You Invest : Ventive Hospitality Ltd

BSE: 544321 NSE: VENTIVE ISIN: INE781S01027
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Ventive Hospitality Ltd belong to?
Ventive Hospitality Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Ventive Hospitality Ltd a good quality company?
Ventive Hospitality Ltd is a average quality company, based on a somewhat consistent 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 Ventive Hospitality Ltd undervalued or overvalued?
Ventive Hospitality Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 72.5 98.94
Price to Book 3.37 3.69
Price to Sales 25.11 30.00
EV to EBITDA 40.2 48.43
Q.4 Is Ventive Hospitality Ltd a good buy now?
Ventive Hospitality 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

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 Ventive Hospitality Ltd?
Ventive Hospitality Ltd revenue growth is 17.5% for FY-2025, which is below its 3-year CAGR of 34.81%, indicating slower growth.

Q.2 Gross Profit margin of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Gross profit margin which is the profit after deduction of direct costs, is 47.1% for FY-2025, which is in line with its 3-year median of 48.4%, indicating stable margins.

Q.3 Operating Profit Margin of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 53.16% for FY-2025, which is in line with its 3-year median of 55.65% indicating stable margins.

Q.4 Net Profit Margin of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Net Profit Margin is 23.81% for FY-2025, is below its 3-year median of 30.47%, indicating decreasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 47.1 48.4
Operating Profit Margin (%) 53.16 55.65
Net Profit Margin (%) 23.81 30.47

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Return on Asset is 4.08%, which is below its 3-year historical median of 16.02%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Return on capital employed is 10.12% for FY-2025, which is below its 3-year historical median of 32.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Return on equity is 5.53% for FY-2025, which is below its 3-year historical median of 66.23%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Cash conversion cycle is -45 days, below its 3-year historical median of -41 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.17 0.53
ROE (%) 5.53 66.23
ROCE (%) 10.12 32.73
Cash Conversion Cycle -45 days -41 days

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

Q.9 Debt to Equity ratio of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Debt-to-Equity ratio is 0.19, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Ventive Hospitality Ltd?
Ventive Hospitality Ltd Debt to cash flow from operations is 3.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ventive Hospitality Ltd?

Q.1 Promoter shareholding and pledge status of Ventive Hospitality Ltd?
Promoters hold 88.98% of the Ventive Hospitality Ltd, with 41.06% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ventive Hospitality Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ventive Hospitality Ltd vs industry peers?
Ventive Hospitality Ltd revenue CAGR is 34.81%, compared to the industry median CAGR of 24.39%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 17.5 24.4
Gross Profit Growth (%) 4.4 31.7
Operating Profit Growth (%) 4.6 38.8
Net Profit Growth (%) -19.3 35.7
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.17 0.35
ROE (%) 5.53 6.03
ROCE (%) 10.12 10.22
Cash Conversion Cycle (days) -45.27 -9

Valuation & price assessment

Q.1 Stock return of Ventive Hospitality Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -9.15% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -9.2%
Q.2 Valuation ratios of Ventive Hospitality Ltd vs historical?
The current P/E ratio of 72.5 is lower than its historical median of 98.94, 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 72.5 98.94 32.85
Price to Book 3.37 3.69 2.01
Price to Sales 25.11 30.00 5.68
EV to EBITDA 40.2 48.43 16.88

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