MoneyWorks4Me

Check Before You Invest : Sayaji Hotels (Indore) Ltd

BSE: 544080 NSE: ISIN: INE0MGS01014
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Sayaji Hotels (Indore) Ltd belong to?
Sayaji Hotels (Indore) Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Sayaji Hotels (Indore) Ltd a good quality company?
Sayaji Hotels (Indore) Ltd is a weak quality company, based on a inconsistent 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 Sayaji Hotels (Indore) Ltd undervalued or overvalued?
Sayaji Hotels (Indore) 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 3-year
Historic Median
Price to Earnings 46.27 28.23
Price to Book 5.03 4.78
Price to Sales 3.3 2.72
EV to EBITDA 19.23 12.70
Q.4 Is Sayaji Hotels (Indore) Ltd a good buy now?
Sayaji Hotels (Indore) 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.

Q.1 Gross Profit margin of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.2% for FY-2026, which is in line with its 3-year median of 17.2%, indicating stable margins.

Q.2 Operating Profit Margin of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.23% for FY-2026, which is in line with its 3-year median of 22.23% indicating stable margins.

Q.3 Net Profit Margin of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Net Profit Margin is 7.51% for FY-2026, is in line with its 3-year median of 7.51%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 17.2 17.2
Operating Profit Margin (%) 22.23 22.23
Net Profit Margin (%) 7.51 7.51

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Return on Asset is 4.69%, which is below its 3-year historical median of 9.22%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Return on capital employed is 12.25% for FY-2026, which is below its 3-year historical median of 23.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Return on equity is 12.08% for FY-2026, which is below its 3-year historical median of 18.48%, indicating the business is making worse use of its shareholders capital.

Q.7 Cash conversion cycle of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Cash conversion cycle is 1 days, below its 3-year historical median of 6 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) 0.62 0.92
ROE (%) 12.08 18.48
ROCE (%) 12.25 23.87
Cash Conversion Cycle 1 days 6 days

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

Q.8 Debt to Equity ratio of Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Debt-to-Equity ratio is 1.55, 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 Sayaji Hotels (Indore) Ltd?
Sayaji Hotels (Indore) Ltd Debt to cash flow from operations is 7, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sayaji Hotels (Indore) Ltd?

Q.1 Promoter shareholding and pledge status of Sayaji Hotels (Indore) Ltd?
Promoters hold 79.51% of the Sayaji Hotels (Indore) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sayaji Hotels (Indore) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sayaji Hotels (Indore) Ltd vs industry peers?
Sayaji Hotels (Indore) Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 19.38%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 19.4
Gross Profit Growth (%) -10 20.7
Operating Profit Growth (%) -7.7 20
Net Profit Growth (%) -27.3 20.5
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.62 0.33
ROE (%) 12.08 5.67
ROCE (%) 12.25 10.12
Cash Conversion Cycle (days) 1.2 -9

Valuation & price assessment

Q.1 Stock return of Sayaji Hotels (Indore) Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -3.37% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -3.4%
Q.2 Valuation ratios of Sayaji Hotels (Indore) Ltd vs historical?
The current P/E ratio of 46.27 is higher than its historical median of 28.23, 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 46.27 28.23 32.85
Price to Book 5.03 4.78 2.01
Price to Sales 3.3 2.72 5.68
EV to EBITDA 19.23 12.70 16.88

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