Brigade Hotel Ventures Limited

Consumer Cyclical — Lodging · NSE

₹56.20+₹0.36 (+0.64%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Brigade Hotel Ventures Limited engages in the development and operation of hotels in India. The company is involved in the operation, management, and leasing of hotels. The company was founded in 2004 and is based in Bengaluru, India.

IndustryLodging

SectorConsumer Cyclical

Employees1,293

Annual revenue₹523 Cr

How does it make money?

Turns over ₹523 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 1,293 employees supports ₹40.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹40.5 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% 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 ROE25.9%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 27.6% and earnings to grow about 17.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+27.6%

Est. earnings growth+17.0%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +50% while net margin moved -1117% 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+50%

Margin effect-1117%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

75/ 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

31.0x

1.4Y Median

821.7x

17 monthly readings · mean 672.3x · range 33.3x–1176.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 96% below its 1.4y median of 821.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 55% below the peer median of 69.2x.

vs. its own history

Cheap

821.7x median over 17 months · -96%

vs. sector peers

Cheap

69.2x median of 4 peers · -55%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 27.6% to 35.7% over 3 years.
Debt is being paid down
Total debt is down 56% over 3 years.
Return on equity is rising
ROE has improved from -9.1% to 6.1%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹61 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 27.6% to 35.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 56% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 96% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 55% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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

1Revenue growth stays above 11% a year✓ 14.4% CAGR
Latest reported year was 2.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 34%✓ 35.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹61 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹2,135 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.23x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.81

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

2.3%

Modest

Modest growth

Profit Growth (YoY)

189.5%

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

-₹61 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

22.2%

Good

Healthy core-business profitability

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

2.37

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

56.2 / 57.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹349 Cr	₹400 Cr	₹467 Cr	₹523 Cr	+14.4%
EBITDA	₹96 Cr	₹143 Cr	₹163 Cr	₹187 Cr	+24.7%
EBITDA Margin	27.6%	35.7%	34.9%	35.7%	—
PAT (Net Profit)	-₹4 Cr	₹25 Cr	₹20 Cr	₹58 Cr	—
EPS	₹-0.1	₹0.65	₹0.07	₹1.68	—
ROE	-9.1%	37.1%	23.2%	6.1%	—
ROCE	9.8%	12.8%	15.1%	10.5%	—
Total Debt	₹700 Cr	₹720 Cr	₹758 Cr	₹308 Cr	-24.0%
Free Cash Flow	₹98 Cr	₹99 Cr	₹54 Cr	-₹61 Cr	—

🟢 Revenue has grown at 14.4% a year over 3 years.

🟢 EBITDA has grown at 24.7% a year over 3 years.

🟢 EBITDA Margin has risen from 27.6% to 35.7% over 3 years (+8.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹58 Cr.

🟢 EPS has turned positive, from ₹-0.1 to ₹1.68.

🟢 ROE has risen from -9.1% to 6.1% over 3 years (+15.2 pts).

🟡 ROCE has held roughly flat at 10.5% over 3 years.

🟢 Total Debt has shrunk at 24.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹98 Cr to -₹61 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,382 Cr

Total Liabilities

₹402 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹200 Cr

Capex

-₹260 Cr

Shareholding (proxy)

Institutional Holding

17.1%

Insider Holding

74.2%

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹85.5

+52.1% vs CMP

Target Range

₹80 – ₹91

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

Brigade Hotel Ventures Ltd. (BRIGHOTEL) 52 Week Low Streak: Second Straight Session Near Yearly Low

Univest, 12 Oct

Brigade Hotel Ventures Limited (NSE:BRIGHOTEL) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Simply Wall Street, 10 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

BRIGADE HOTEL VENTURE LTD Share Price

Upstox, 05 May

Brigade Hotel Ventures Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Buy Brigade Hotel Ventures; target of Rs 96: ICICI Securities

Moneycontrol.com, 05 May

Brigade Hotel Ventures approves ESOP plan and ₹64.22 crore RPTs

scanx.trade, 05 Oct

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

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation

WeakRisk

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 — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑