Advani Hotels & Resorts (India) Limited

Consumer Cyclical — Lodging · NSE

₹48.14+₹0.67 (+1.41%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Advani Hotels & Resorts (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Advani Hotels & Resorts (India) Limited engages in the hotel business in India. The company owns and operates the Caravela Beach Resort, a five-star Deluxe Resort situated in South Goa.

IndustryLodging

SectorConsumer Cyclical

Employees170

Annual revenue₹97 Cr

How does it make money?

Turns over ₹97 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 170 employees supports ₹57.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin35.1%

Net margin24.5%

Revenue / employee₹57.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 6.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE6.0%

ROE4.6%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+6%

Margin effect-21%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.0% — barely ahead of inflation
✗ Profit has declined at 5.9% a year
✗ Profit fell 40.0% in the latest year

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.4x

3Y Median

21.0x

40 monthly readings · mean 21.2x · range 14.3x–27.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 21.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 72% below the peer median of 69.2x.

vs. its own history

Fair

21.0x median over 40 months · -7%

vs. sector peers

Cheap

69.2x median of 4 peers · -72%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.4x

P/B

0.86x

EV/EBITDA

13.1x

PEG

—

Dividend Yield

3.74%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 42.9% to 35.1% over 3 years.
Debt is rising
Total debt is up 38% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 45.6% to 4.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 55.4% to 6.0% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 37% against revenue growth of 6% — stock may not be moving.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.9 points, from 42.9% to 35.1%.
🟡Debt is increasingFinancial
Total debt is up 38% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 37% against revenue up 6% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 72% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 42.9% to 35.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 2.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 45.6% to 4.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 33%✓ 35.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.0% CAGR
Latest reported year was 5.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹445 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.86x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.48

Profitable

Profitable on a per-share basis

ROE

4.6%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

5.5%

Modest

Modest growth

Profit Growth (YoY)

-40.0%

Falling

Profits are shrinking

Dividend Yield

3.74%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹48.14

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

21.2%

Good

Strong bottom-line conversion

Current Ratio

3.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

47.7 / 48.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹92 Cr	₹97 Cr	₹98 Cr	₹97 Cr	+2.0%
EBITDA	₹39 Cr	₹35 Cr	₹37 Cr	₹34 Cr	-4.6%
EBITDA Margin	42.9%	35.7%	37.6%	35.1%	—
PAT (Net Profit)	₹29 Cr	₹25 Cr	₹26 Cr	₹24 Cr	-5.9%
EPS	₹3.09	₹2.7	₹2.86	₹2.58	-5.8%
ROE	45.6%	34.7%	32.5%	4.6%	—
ROCE	55.4%	42.8%	40.1%	6.0%	—
Total Debt	₹2 Cr	₹2 Cr	₹1 Cr	₹3 Cr	+11.2%
Free Cash Flow	₹23 Cr	₹25 Cr	₹18 Cr	₹21 Cr	-4.4%

🟢 Revenue has grown at 2.0% a year over 3 years.

🔴 EBITDA has shrunk at 4.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 42.9% to 35.1% over 3 years (-7.9 pts).

🔴 PAT (Net Profit) has shrunk at 5.9% a year over 3 years.

🔴 EPS has shrunk at 5.8% a year over 3 years.

🔴 ROE has fallen from 45.6% to 4.6% over 3 years (-41.0 pts).

🔴 ROCE has fallen from 55.4% to 6.0% over 3 years (-49.4 pts).

🔴 Total Debt has grown at 11.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹544 Cr

Total Liabilities

₹29 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹23 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.0%

Corporate Actions

Dividend Rate

₹1.8

Ex-Dividend Date

29 May 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

47 Best Hotel Stocks To Watch In India For October 2026

Samco, 15 Oct

Advani Hotels & Resorts (India) Share Price Forecast to 2030

Univest, 14 Jul

Advani Hotels & Resorts (India) Limited's (NSE:ADVANIHOTR) Share Price Not Quite Adding Up

Simply Wall Street, 20 Jan

Hidden Value Play? Goa Resort Valued At Rs 982 Crore, Nearly Double The Company's Rs 485 Crore Market Cap; Check Details

Dalal Street Investment Journal, 16 Jun

Advani Hotels & Resorts (India) Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Advani Hotels & Resorts conducts 39th AGM on September 22, 2026

scanx.trade, 22 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong16.6/20

🔴GrowthWeak5/20

🟡ProfitabilityModerate7.5/15

🟢ValuationAttractive10.9/15

🟡RiskModerate6.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 33%35.1%
✗Revenue growth stays above 4% a year2.0% CAGR
✓Free cash flow remains positive₹21 Cr
✓Debt / EBITDA stays below 2x0.1x
✗ROCE stays above 8%6.0%