Asian Hotels (West) Limited

Consumer Cyclical — Lodging · NSE

₹547.00+₹16.45 (+3.10%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Asian Hotels (West) Limited, together with its subsidiaries, engages in the hotel business in India. The company owns and operates the Hotel Hyatt Regency in Mumbai; and the JW Marriott Hotel, a five-star deluxe hotel in New Delhi.

IndustryLodging

SectorConsumer Cyclical

Annual revenue₹400 Cr

How does it make money?

Turns over ₹400 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹51 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of undefined% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +26% while net margin moved +60% 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+26%

Margin effect+60%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

9.0x

3Y Median

9.6x

40 monthly readings · mean 14.0x · range 4.2x–30.5x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 9.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 87% below the peer median of 69.2x.

vs. its own history

Fair

9.6x median over 40 months · -7%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

6.8x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 47.6% to 50.6% over 3 years.
Debt is being paid down
Total debt is down 13% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.27 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 47.6% to 50.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 87% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 4.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 7.9% 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 49%✓ 50.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 7.9% CAGR
Latest reported year was 9.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹149 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

4 good · 5 neutral · 2 weak

Market Cap

₹637 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.0x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹61.09

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

31.0%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

9.4%

Modest

Modest growth

Profit Growth (YoY)

76.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹149 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

29.4%

Good

Healthy core-business profitability

Net Margin

16.0%

Good

Strong bottom-line conversion

Current Ratio

0.27

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

538.4 / 535.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹319 Cr	₹400 Cr	₹411 Cr	₹400 Cr	+7.9%
EBITDA	₹152 Cr	₹130 Cr	₹180 Cr	₹202 Cr	+10.1%
EBITDA Margin	47.6%	32.4%	43.9%	50.6%	—
PAT (Net Profit)	₹32 Cr	₹6 Cr	₹40 Cr	₹65 Cr	+26.1%
EPS	₹27.84	₹4.73	₹34.16	₹55.77	+26.1%
ROCE	18.8%	26.9%	24.6%	31.0%	—
Total Debt	₹953 Cr	₹993 Cr	₹915 Cr	₹833 Cr	-4.4%
Free Cash Flow	₹150 Cr	₹145 Cr	₹118 Cr	₹149 Cr	-0.3%

🟢 Revenue has grown at 7.9% a year over 3 years.

🟢 EBITDA has grown at 10.1% a year over 3 years.

🟢 EBITDA Margin has risen from 47.6% to 50.6% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has grown at 26.1% a year over 3 years.

🟢 EPS has grown at 26.1% a year over 3 years.

🟢 ROCE has risen from 18.8% to 31.0% over 3 years (+12.3 pts).

🟢 Total Debt has shrunk at 4.4% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹977 Cr

Total Liabilities

₹991 Cr

Cash & Equivalents

₹103 Cr

Operating Cash Flow

₹203 Cr

Capex

-₹54 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.1%

Corporate Actions

Ex-Dividend Date

08 Aug 2019

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

1 mixed5 general

Asian Hotels (West) (AHLWEST.NS) Holds Flat at ₹543.5 as Traders Track ₹516–₹571 Range - Ease of Movement

https://www.siam.in/, 13 Oct

Asian Hotels West promoter group acquires 2 lakh shares, stake up to 21.46%

scanx.trade, 06 Oct

Asian Hotels (West) Q1 FY27 Results Preview

Univest, 09 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Asian Hotels West Shares Hit Upper Circuit Despite Extended Loss-Making Streak

Kalkine India, 11 May

Asian Hotels (West) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Asian Hotels (West) Limited Clarifies No Price Sensitive Information Following BSE Query on Stock Movement

scanx.trade, 16 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Asian Hotels (West) Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑