Gujarat Hotels Limited

Consumer Cyclical — Lodging · BSE

₹179.00+₹0.10 (+0.06%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by 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. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Gujarat Hotels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gujarat Hotels Limited engages in hotelier business in India. It operates the WelcomHotel Vadodara, a 5-star hotel in Vadodara. The company was incorporated in 1982 and is based in Vadodara, India.

IndustryLodging

SectorConsumer Cyclical

Employees145

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹122 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 145 employees supports ₹3.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹3.2 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 7.2% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +26% while net margin moved +5% 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+5%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.24 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

74/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.8x

3Y Median

16.7x

40 monthly readings · mean 17.0x · range 11.9x–25.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 29% below its 3y median of 16.7x. 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 83% below the peer median of 69.2x.

vs. its own history

Cheap

16.7x median over 40 months · -29%

vs. sector peers

Cheap

69.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

66.6x

PEG

1.19

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 49% 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

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.1 points, from 38.1% to 21.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 29% 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 83% 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 38.1% to 21.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 20%✓ 21.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.1% CAGR
Latest reported year was 17.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 7.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 16.7x✓ 11.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ 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

5 good · 5 neutral · 1 weak

Market Cap

₹68 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.8x

Cheap

Cheap against the generic band

P/B Ratio

1.28x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹15.13

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

17.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.6%

Modest

Slow profit growth

Dividend Yield

1.68%

Modest

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

85.0%

Good

Healthy core-business profitability

Net Margin

120.2%

Good

Strong bottom-line conversion

Current Ratio

47.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

177.7 / 180.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹3 Cr	₹4 Cr	₹5 Cr	+8.1%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹1 Cr	-10.1%
EBITDA Margin	38.1%	3.7%	7.8%	21.9%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹5 Cr	₹6 Cr	+10.0%
EPS	₹11.23	₹12.47	₹13.99	₹14.93	+10.0%
ROE	10.6%	10.7%	10.9%	10.7%	—
ROCE	7.7%	6.5%	7.1%	7.2%	—
Free Cash Flow	₹2 Cr	₹3 Cr	₹2 Cr	₹3 Cr	+14.3%

🟢 Revenue has grown at 8.1% a year over 3 years.

🔴 EBITDA has shrunk at 10.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 38.1% to 21.9% over 3 years (-16.1 pts).

🟢 PAT (Net Profit) has grown at 10.0% a year over 3 years.

🟢 EPS has grown at 10.0% a year over 3 years.

🟡 ROE has held roughly flat at 10.7% over 3 years.

🟡 ROCE has held roughly flat at 7.2% over 3 years.

🟢 Free Cash Flow has grown at 14.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹57 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

7.9%

Insider Holding

67.2%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

17 Jul 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

1 positive1 mixed1 negative3 general

Hotel Stock BLOCK DEAL: FMGC Giant ITC-Backed ITC Hotels Stock Nears Day's High Despite GQG's Stake Sale; BUY?

Goodreturns, 14 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Gujarat Hotels Q2FY27 Results: Net profit up 0.7% YoY to ₹119.67 lakh

scanx.trade, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

ITC HOTELS LIMITED Share Price - Live NSE: ITCHOTELS Stock Price & Chart

Upstox, 16 Oct

Gujarat Hotels Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Gujarat Hotels closes trading window from October 1 for Q2FY27 results

scanx.trade, 25 SeptResults

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

Lemon Tree Hotels opens 12th operational hotel in Gujarat

Business Standard, 21 Aug

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑