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Check Before You Invest : Eco Hotels & Resorts Ltd

BSE: 514402 NSE: ISIN: INE638N01012
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Eco Hotels & Resorts Ltd belong to?
Eco Hotels & Resorts Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Eco Hotels & Resorts Ltd a good quality company?
Eco Hotels & Resorts 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 Eco Hotels & Resorts Ltd undervalued or overvalued?
Eco Hotels & Resorts Ltd appears 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 5-year
Historic Median
Price to Earnings - -
Price to Book 0.96 4.60
Price to Sales 20.09 -
EV to EBITDA -19.8 -33.54
Q.4 Is Eco Hotels & Resorts Ltd a good buy now?
Eco Hotels & Resorts 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 Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -41.42%, indicating faster growth.

Q.2 Gross Profit margin of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd Gross profit margin which is the profit after deduction of direct costs, is -1872.3% for FY-2025, which is below its 5-year median of -40.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1687.82% for FY-2025, which is below its 5-year median of -177.61% indicating decreasing margins.

Q.4 Net Profit Margin of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd Net Profit Margin is -2152.74% for FY-2025, is below its 5-year median of -47.12%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -1872.3 -40.9
Operating Profit Margin (%) -1687.82 -177.61
Net Profit Margin (%) -2152.74 -47.12

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd Return on Asset is -4.2%, which is above its 5-year historical median of -30.94%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd Return on capital employed is -3.47% for FY-2025, which is above its 5-year historical median of -17.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

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

Q.7 Debt to Equity ratio of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts 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.8 Debt to cash flow from operations of Eco Hotels & Resorts Ltd?
Eco Hotels & Resorts Ltd Debt to cash flow from operations is -3.89, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Eco Hotels & Resorts Ltd?
Promoters hold 30.41% of the Eco Hotels & Resorts Ltd, with 5.67% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Eco Hotels & Resorts Ltd vs industry peers?
Eco Hotels & Resorts Ltd revenue CAGR is -41.42%, compared to the industry median CAGR of 3.58%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 3.6
Gross Profit Growth (%) 0 15.6
Operating Profit Growth (%) 0 13.5
Net Profit Growth (%) 0 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 0.27
ROE (%) - 2.92
ROCE (%) -3.47 6.09
Cash Conversion Cycle (days) 83.45 -

Valuation & price assessment

Q.1 Stock return of Eco Hotels & Resorts Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
4.8% 7.8% -26.2% -0.3%
Q.2 Valuation ratios of Eco Hotels & Resorts Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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 - - 32.28
Price to Book 0.96 4.60 1.81
Price to Sales 20.09 - 5.80
EV to EBITDA -19.8 -33.54 17.25

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