Cindrella Hotels Limited

Consumer Cyclical — Lodging · BSE

₹43.00−₹2.02 (−4.49%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Cindrella Hotels Limited engages in the hospitality, travel, and tourism business in India. The company operates Cindrella hotel.

IndustryLodging

SectorConsumer Cyclical

Employees103

Annual revenue₹11 Cr

How does it make money?

Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 103 employees supports ₹10.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹10.3 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 3.5% 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved -94% 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+33%

Margin effect-94%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.7% is weak
✗ ROE has fallen by 21.1 points over the period

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

49/ 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

63.2x

3Y Median

32.8x

40 monthly readings · mean 50.6x · range 7.0x–122.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 93% above its 3y median of 32.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Expensive

32.8x median over 40 months · +93%

vs. sector peers

Fair

69.2x median of 4 peers · -9%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

10.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 476% over 3 years.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.8% to 1.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.1% to 3.5% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 507% against revenue up 33% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 93% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 67% against revenue up 33% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 507% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 93% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 22.8% to 1.7%. 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

1EBITDA margin holds above 15%✓ 16.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 7% a year✓ 9.8% CAGR
Latest reported year was 24.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 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

7 good · 1 neutral · 3 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

63.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.68

Profitable

Profitable on a per-share basis

ROE

1.7%

Weak

Weak capital efficiency

ROCE

3.5%

Weak

Low return on total capital employed

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

24.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

53.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.33%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.2%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

45.3 / 48.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹8 Cr	₹9 Cr	₹11 Cr	+9.8%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+7.6%
EBITDA Margin	17.7%	15.5%	20.8%	16.7%	—
PAT (Net Profit)	₹3 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-58.0%
EPS	₹7.23	₹1.84	₹0.57	₹0.54	-57.9%
ROE	22.8%	5.5%	1.7%	1.7%	—
ROCE	27.1%	2.4%	3.6%	3.5%	—
Total Debt	—	₹2 Cr	₹3 Cr	₹3 Cr	—
Free Cash Flow	₹0 Cr	-₹3 Cr	-₹0 Cr	₹1 Cr	+79.2%

🟢 Revenue has grown at 9.8% a year over 3 years.

🟢 EBITDA has grown at 7.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.7% to 16.7% over 3 years (-1.1 pts).

🔴 PAT (Net Profit) has shrunk at 58.0% a year over 3 years.

🔴 EPS has shrunk at 57.9% a year over 3 years.

🔴 ROE has fallen from 22.8% to 1.7% over 3 years (-21.1 pts).

🔴 ROCE has fallen from 27.1% to 3.5% over 3 years (-23.6 pts).

🟢 Free Cash Flow has grown at 79.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.0%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

12 Sept 2025

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

2 mixed4 general

Cindrella Financial Services adopts FY26 financials, reappoints Vivek Baid

scanx.trade, 29 Sept

73 Top Hospitality Stocks In India 2026 – Detailed Sector & Stock Analysis

Samco, 01 Sept

Conrad Pune Appoints Cindrella Gomes as Director of Food & Beverage

Entrepreneur India, 11 Feb

Q4 results 2026: RVNL to IndiGo among companies to declare Q4 results next week; check full list here

Livemint, 24 MayResults

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

Q2 Results Today: Vodafone Idea, Ather Energy, Emami, V-Mart, Vikran Engineering, More

Goodreturns, 10 NovResults

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

ITC HOTELS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 28 Jan

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

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑