Check Before You Invest : HLV Ltd

Snapshot

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

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

Q.2 Is HLV Ltd a good quality company?

HLV Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is HLV Ltd undervalued or overvalued?

HLV Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is HLV Ltd a good buy now?

HLV 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

Q.1 Revenue growth of HLV Ltd?

HLV Ltd revenue growth is 2.1% for FY-2025, which is below its 5-year CAGR of 6.89%, indicating slower growth.

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

HLV Ltd Return on capital employed is 6.03% for FY-2025, which is above its 5-year historical median of 3.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of HLV Ltd?

HLV Ltd Return on Asset is 4.29%, which is above its 5-year historical median of 1.35%, indicating improved asset utilization efficiency.

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

HLV Ltd Return on equity is 5.73% for FY-2025, which is above its 5-year historical median of 1.84%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of HLV Ltd?

HLV Ltd Cash conversion cycle is -213 days, below its 5-year historical median of -187 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.33	0.3
ROE	5.73	1.84
ROCE	6.03	3.11
Cash Conversion Cycle	-213 days	-187 days

Q.6 Gross Profit margin of HLV Ltd?

HLV Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.1% for FY-2025, which is above its 5-year median of 12%, indicating increasing margins.

Q.7 Operating Profit Margin of HLV Ltd?

HLV Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.85% for FY-2025, which is above its 5-year median of 9.26% indicating increasing margins.

Q.8 Net Profit Margin of HLV Ltd?

HLV Ltd Net Profit Margin is 12.85% for FY-2025, is above with its 5-year median of 4.42%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.1	12
Operating Profit Margin	13.85	9.26
Net Profit Margin	12.85	4.42

Q.9 Debt to Equity ratio of HLV Ltd?

HLV Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.21, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of HLV Ltd?

HLV Ltd Debt to cash flow from operations is 0.54, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HLV Ltd?

Promoters hold 39.07% of the HLV Ltd, with 36.49% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HLV Ltd vs industry peers?

HLV Ltd revenue CAGR is 6.89%, compared to the industry median CAGR of 7.44%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2.1	7.4
Gross Profit Growth	7.9	14.7
Operating Profit Growth	-9.7	14.7
Net Profit Growth	8.3	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.33	0.32
ROE	5.73	4.28
ROCE	6.03	6.32
Cash Conversion Cycle (days)	-213.09	-1

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of -7.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-7.1%	7.2%	-9.7%	-31.6%

Q.3 Valuation ratios of HLV Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	132.95	72.19	32.23
Price to Book	1.22	1.87	1.82
Price to Sales	2.85	6.44	5.80
EV to EBITDA	15.24	29.14	17.27

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