Check Before You Invest : Aruna Hotels Ltd

Q: Which industry/sub-sector does Aruna Hotels Ltd belong to?

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

Q: Is Aruna Hotels Ltd a good quality company?

Aruna Hotels Ltd is a quality company, based on a 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 Aruna Hotels Ltd undervalued or overvalued?

Aruna Hotels Ltd appears Fair, as its key valuation ratios are in line with 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: 6.46, Historic Median: -. Price to Book, Current: -0.53, Historic Median: -0.65. Price to Sales, Current: 1.15, Historic Median: 1.94. EV to EBITDA, Current: 7.27, Historic Median: 10.74

Q: Is Aruna Hotels Ltd a good buy now?

Aruna Hotels 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

Q: Revenue growth of Aruna Hotels Ltd?

Aruna Hotels Ltd revenue growth is 36.7% for FY-2025, which is above its 3-year CAGR of NA%, indicating faster growth.

Q: Gross Profit margin of Aruna Hotels Ltd?

Aruna Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.6% for FY-2025, which is above its 3-year median of -1.9%, indicating increasing margins.

Q: Operating Profit Margin of Aruna Hotels Ltd?

Aruna Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.39% for FY-2025, which is above its 3-year median of 10.14% indicating increasing margins.

Q: Net Profit Margin of Aruna Hotels Ltd?

Aruna Hotels Ltd Net Profit Margin is 4.37% for FY-2025, is above its 3-year median of -25.97%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 12.6, Historic Median: -1.9. Operating Profit Margin (%), Current: 16.39, Historic Median: 10.14. Net Profit Margin (%), Current: 4.37, Historic Median: -25.97

Q: Return on Asset of Aruna Hotels Ltd?

Aruna Hotels Ltd Return on Asset is 0.58%, which is above its 3-year historical median of -2.49%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Aruna Hotels Ltd?

Aruna Hotels Ltd Return on capital employed is 23.15% for FY-2025, which is above its 3-year historical median of 15.71%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Aruna Hotels Ltd

Snapshot

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

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

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

Aruna Hotels Ltd is a quality company, based on a 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 Aruna Hotels Ltd undervalued or overvalued?

Aruna Hotels Ltd appears Fair, as its key valuation ratios are in line with 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	6.46	-
Price to Book	-0.53	-0.65
Price to Sales	1.15	1.94
EV to EBITDA	7.27	10.74

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

Aruna Hotels 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

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 Aruna Hotels Ltd?

Aruna Hotels Ltd revenue growth is 36.7% for FY-2025, which is above its 3-year CAGR of NA%, indicating faster growth.

Q.2 Gross Profit margin of Aruna Hotels Ltd?

Aruna Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.6% for FY-2025, which is above its 3-year median of -1.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Aruna Hotels Ltd?

Aruna Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.39% for FY-2025, which is above its 3-year median of 10.14% indicating increasing margins.

Q.4 Net Profit Margin of Aruna Hotels Ltd?

Aruna Hotels Ltd Net Profit Margin is 4.37% for FY-2025, is above its 3-year median of -25.97%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	12.6	-1.9
Operating Profit Margin (%)	16.39	10.14
Net Profit Margin (%)	4.37	-25.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aruna Hotels Ltd?

Aruna Hotels Ltd Return on Asset is 0.58%, which is above its 3-year historical median of -2.49%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aruna Hotels Ltd?

Aruna Hotels Ltd Return on capital employed is 23.15% for FY-2025, which is above its 3-year historical median of 15.71%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Aruna Hotels Ltd?

Aruna Hotels Ltd Cash conversion cycle is -55 days, below its 3-year historical median of -42 days, indicating improved 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 Aruna Hotels Ltd?

Aruna Hotels Ltd Debt-to-Equity ratio is -2.07, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Aruna Hotels Ltd?

Aruna Hotels Ltd Debt to cash flow from operations is 6.98, which is at a unhealthy level.

Ownership & governance

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

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

Promoters hold 56.29% of the Aruna Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

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

Aruna Hotels 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 (%)	36.7	24.4
Gross Profit Growth (%)	0	31.7
Operating Profit Growth (%)	120.5	38.8
Net Profit Growth (%)	0	35.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	0.13	0.35
ROE (%)	-	6.03
ROCE (%)	23.15	10.22
Cash Conversion Cycle (days)	-55.33	-9

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 12% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	12%	10.2%	-26.7%	-22.9%

Q.2 Valuation ratios of Aruna Hotels Ltd vs historical?

The current P/E ratio of 6.46 is higher than its historical median of , indicating that the stock is trading above 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	6.46	-	32.85
Price to Book	-0.53	-0.65	2.01
Price to Sales	1.15	1.94	5.68
EV to EBITDA	7.27	10.74	16.88

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Check Before You Invest : Aruna Hotels Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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