Apollo Sindoori Hotels Limited

Industrials — Specialty Business Services · NSE

₹1,138.00+₹49.30 (+4.53%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Apollo Sindoori Hotels Limited operates as a hospitality service management and support services company in India. It offers catering services to corporates, institutions, hospitals, and industries; and kitchen planning and management services.

IndustrySpecialty Business Services

SectorIndustrials

Employees4,967

Annual revenue₹632 Cr

How does it make money?

Turns over ₹632 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 4,967 employees supports ₹12.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹12.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Little sign of one

Returns on capital of 10.9% 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.

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +72% while net margin moved -64% 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+72%

Margin effect-64%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.7% is weak
✗ ROE has fallen by 7.4 points over the period

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

61/ 100

Fair

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

35.6x

3Y Median

32.1x

40 monthly readings · mean 34.1x · range 22.8x–46.0x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 11% above its 3y median of 32.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 60% below the peer median of 88.8x.

vs. its own history

Fair

32.1x median over 40 months · +11%

vs. sector peers

Cheap

88.8x median of 3 peers · -60%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

9.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 29% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.1% to 6.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.8% to 10.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 38% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 29% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 60% 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?

Returns on shareholder capital are falling
ROE has dropped from 14.1% to 6.7%. 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

1Revenue growth stays above 15% a year✓ 19.8% CAGR
Latest reported year was 28.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹296 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹31.97

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

10.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

28.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-55.5%

Falling

Profits are shrinking

Dividend Yield

0.26%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.34

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1169.7 / 1197.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹367 Cr	₹519 Cr	₹542 Cr	₹632 Cr	+19.8%
EBITDA	₹23 Cr	₹34 Cr	₹28 Cr	₹37 Cr	+17.2%
EBITDA Margin	6.3%	6.5%	5.2%	5.9%	—
PAT (Net Profit)	₹17 Cr	₹11 Cr	₹8 Cr	₹11 Cr	-14.7%
EPS	₹65.05	₹42.57	₹29.71	₹40.39	-14.7%
ROE	14.1%	8.2%	5.3%	6.7%	—
ROCE	14.8%	15.5%	10.0%	10.9%	—
Total Debt	₹127 Cr	₹87 Cr	₹81 Cr	₹91 Cr	-10.6%
Free Cash Flow	-₹18 Cr	₹5 Cr	₹9 Cr	-₹4 Cr	—

🟢 Revenue has grown at 19.8% a year over 3 years.

🟢 EBITDA has grown at 17.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.9% over 3 years.

🔴 PAT (Net Profit) has shrunk at 14.7% a year over 3 years.

🔴 EPS has shrunk at 14.7% a year over 3 years.

🔴 ROE has fallen from 14.1% to 6.7% over 3 years (-7.4 pts).

🔴 ROCE has fallen from 14.8% to 10.9% over 3 years (-3.9 pts).

🟢 Total Debt has shrunk at 10.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹385 Cr

Total Liabilities

₹228 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

₹40 Cr

Capex

-₹45 Cr

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 negative5 general

Apollo Sindoori Hotels: Best Stock in Its Sector? Key Metrics

Univest, 23 Sept

Apollo Sindoori Hotels Ltd. Actuals & Estimates (NSE:APOLSINHOT)

TradingView, 26 Jun

Apollo Sindoori Hotels Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Volume Gainers at 4:00 PM IST, July 15: Apollo Sindoori, Par Drugs

HDFC Sky, 15 Jul

Apollo Sindoori Hotels standalone net profit declines 25.52% in the March 2026 quarter

Business Standard, 28 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Apollo Sindoori Hotels appoints Duvvuru Rajesh Reddy as UK subsidiary Director

scanx.trade, 01 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑