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Check Before You Invest : Viceroy Hotels Ltd

BSE: 523796 NSE: VHLTD ISIN: INE048C01025
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Viceroy Hotels Ltd belong to?
Viceroy Hotels Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Viceroy Hotels Ltd a good quality company?
Viceroy Hotels 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 Viceroy Hotels Ltd undervalued or overvalued?
Viceroy Hotels 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 5-year
Historic Median
Price to Earnings 48.05 3.67
Price to Book 3.76 -0.01
Price to Sales 7.41 0.45
EV to EBITDA 25.16 25.37
Q.4 Is Viceroy Hotels Ltd a good buy now?
Viceroy Hotels 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Viceroy Hotels Ltd?
Viceroy Hotels Ltd revenue growth is 11.9% for FY-2025, which is above its 5-year CAGR of 8.5%, indicating faster growth.

Q.2 Gross Profit margin of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.6% for FY-2025, which is above its 5-year median of 13.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.68% for FY-2025, which is above its 5-year median of 15.18% indicating increasing margins.

Q.4 Net Profit Margin of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Net Profit Margin is 57.67% for FY-2025, is above its 5-year median of 4.83%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 24.6 13.9
Operating Profit Margin (%) 25.68 15.18
Net Profit Margin (%) 57.67 4.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Return on Asset is 29.21%, which is above its 5-year historical median of 2.01%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Return on capital employed is 10.67% for FY-2025, which is above its 5-year historical median of 4.82%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Cash conversion cycle of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Cash conversion cycle is -3 days, above its 5-year historical median of -87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Debt-to-Equity ratio is 0.21, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Viceroy Hotels Ltd?
Viceroy Hotels Ltd Debt to cash flow from operations is 3.46, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Viceroy Hotels Ltd?

Q.1 Promoter shareholding and pledge status of Viceroy Hotels Ltd?
Promoters hold 84.11% of the Viceroy Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Viceroy Hotels Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Viceroy Hotels Ltd vs industry peers?
Viceroy Hotels Ltd revenue CAGR is 8.50%, compared to the industry median CAGR of 3.58%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 11.9 3.6
Gross Profit Growth (%) 50 15.6
Operating Profit Growth (%) 54.6 13.5
Net Profit Growth (%) 985.7 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.51 0.27
ROE (%) - 2.92
ROCE (%) 10.67 6.09
Cash Conversion Cycle (days) -3.24 -

Valuation & price assessment

Q.1 Stock return of Viceroy Hotels Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
25.3% 137.6% 332.6% 27%
Q.2 Valuation ratios of Viceroy Hotels Ltd vs historical?
The current P/E ratio of 48.05 is higher than its historical median of 3.67, indicating that the stock is trading above 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 48.05 3.67 32.28
Price to Book 3.76 -0.01 1.81
Price to Sales 7.41 0.45 5.80
EV to EBITDA 25.16 25.37 17.25

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