Jindal Hotels Limited

Consumer Cyclical — Lodging · BSE

₹63.99+₹1.83 (+2.94%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jindal Hotels Limited operates a business hotel in India. The company operates Grand Mercure Vadodara Surya Palace, a 3-star category hotel located in Vadodara; and Azure restaurant.

IndustryLodging

SectorConsumer Cyclical

Employees184

Annual revenue₹48 Cr

How does it make money?

Turns over ₹48 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 184 employees supports ₹26.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹26.1 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 11.1% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +17% while net margin moved -13% 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+17%

Margin effect-13%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.4% — barely ahead of inflation
✗ Profit CAGR of only 0.7%

Quality vs. Valuation

Company Quality

46/ 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

15.0x

3Y Median

27.9x

40 monthly readings · mean 30.8x · range 14.1x–49.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 27.9x. 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 78% below the peer median of 69.2x.

vs. its own history

Cheap

27.9x median over 40 months · -46%

vs. sector peers

Cheap

69.2x median of 4 peers · -78%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.9x

PEG

20.28

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 20% over 3 years.
Return on capital is rising
ROCE has improved from 9.1% to 11.1%.
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

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.93x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 85% against revenue up 17% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 20% 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 46% 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 78% 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?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 85% against revenue up 17%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.4% 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.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 26%✓ 27.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.5x
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✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.4% CAGR
Latest reported year was 18.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 5 neutral · 1 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Cheap

Cheap against the generic band

P/B Ratio

1.82x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.27

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

11.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.93x

High

High leverage

Revenue Growth (YoY)

18.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

82.9%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.1%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

0.86

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

63.5 / 63.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41 Cr	₹43 Cr	₹45 Cr	₹48 Cr	+5.4%
EBITDA	₹11 Cr	₹12 Cr	₹9 Cr	₹13 Cr	+5.6%
EBITDA Margin	27.7%	27.0%	19.1%	27.9%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+0.7%
EPS	₹2.95	₹3.43	₹1.65	₹3.02	+0.8%
ROE	11.0%	11.3%	5.1%	8.6%	—
ROCE	9.1%	9.6%	9.7%	11.1%	—
Total Debt	₹59 Cr	₹54 Cr	₹51 Cr	₹48 Cr	-7.1%
Free Cash Flow	₹7 Cr	₹4 Cr	₹8 Cr	₹6 Cr	-4.6%

🟢 Revenue has grown at 5.4% a year over 3 years.

🟢 EBITDA has grown at 5.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 27.9% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.7% a year).

🟡 EPS has been broadly flat over 3 years (0.8% a year).

🔴 ROE has fallen from 11.0% to 8.6% over 3 years (-2.4 pts).

🟢 ROCE has risen from 9.1% to 11.1% over 3 years (+2.0 pts).

🟢 Total Debt has shrunk at 7.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹81 Cr

Total Liabilities

₹57 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.1%

Corporate Actions

Ex-Dividend Date

04 Sept 2017

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 positive2 mixed2 general

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

Value Research, 30 Aug

Jindal Hotels AGM results: All resolutions pass, Palak Gandhi re-appointed

scanx.trade, 22 SeptResults

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

Jindal Hotels FY26 Net Profit Rises 83% to ₹211.44 Lakh

scanx.trade, 19 MayResults

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

P&G Hygiene, Taj Gvk Hotels, Jindal Drilling, Suprajit Engineering, Vadilal Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 31 Aug

Poona Dal and Oil Industries standalone net profit rises 5.56% in the March 2026 quarter

Business Standard, 20 MayResults

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

Q1 results 2026: Infosys to Eternal among companies to declare Q1 results next week; check full list here

Livemint, 19 JulResults

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

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · 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. 4 high-severity red flags sit 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 ↑