Kamat Hotels (India) Limited

Consumer Cyclical — Lodging · NSE

₹252.00+₹0.52 (+0.21%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

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

What does this company do?

Kamat Hotels (India) Limited, together with its subsidiaries, engages in the hospitality business in India. The company operates hotels and resorts under The Orchid, Fort JadhavGadh, Lotus Resorts, Toyam by Orchid, Mahodadhi Palace, and IRA by Orchid brands.

IndustryLodging

SectorConsumer Cyclical

Employees1,611

Annual revenue₹362 Cr

How does it make money?

Turns over ₹362 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 1,611 employees supports ₹22.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹22.4 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 13.6% 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 +30% while net margin moved -92% 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+30%

Margin effect-92%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.0% is steady
✗ Profit has declined at 52.1% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

56/ 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

17.4x

3Y Median

13.6x

40 monthly readings · mean 11.1x · range 1.5x–19.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 28% above its 3y median of 13.6x. 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 75% below the peer median of 69.2x.

vs. its own history

Expensive

13.6x median over 40 months · +28%

vs. sector peers

Cheap

69.2x median of 4 peers · -75%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 33% 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 203.1% to 10.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 88.7% to 13.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.4 points, from 40.5% to 29.2%.
🟡Profit is decliningFinancial
Net profit is down 89% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 72% against revenue up 30% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 33% 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 75% 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 40.5% to 29.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 72% against revenue up 30%. 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 28% 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 203.1% to 10.9%. 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 27%✓ 29.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was 9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹70 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

9 / 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 · 8 neutral · 0 weak

Market Cap

₹743 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.4x

Fair

Fairly valued against the generic band

P/B Ratio

3.10x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.5

Profitable

Profitable on a per-share basis

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

13.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.5%

Modest

Modest growth

Profit Growth (YoY)

124.6%

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

₹70 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

18.7%

Good

Healthy core-business profitability

Net Margin

11.3%

Good

Strong bottom-line conversion

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

243.7 / 223.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹279 Cr	₹288 Cr	₹322 Cr	₹362 Cr	+9.0%
EBITDA	₹113 Cr	₹101 Cr	₹112 Cr	₹105 Cr	-2.3%
EBITDA Margin	40.5%	35.0%	34.8%	29.2%	—
PAT (Net Profit)	₹313 Cr	₹45 Cr	₹47 Cr	₹34 Cr	-52.1%
EPS	₹132.31	₹15.8	₹15.6	₹12.71	-54.2%
ROE	203.1%	21.8%	16.7%	10.9%	—
ROCE	88.7%	23.2%	18.3%	13.6%	—
Total Debt	₹346 Cr	₹265 Cr	₹204 Cr	₹233 Cr	-12.4%
Free Cash Flow	₹110 Cr	₹65 Cr	₹49 Cr	₹70 Cr	-13.9%

🟢 Revenue has grown at 9.0% a year over 3 years.

🔴 EBITDA has shrunk at 2.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 40.5% to 29.2% over 3 years (-11.4 pts).

🔴 PAT (Net Profit) has shrunk at 52.1% a year over 3 years.

🔴 EPS has shrunk at 54.2% a year over 3 years.

🔴 ROE has fallen from 203.1% to 10.9% over 3 years (-192.2 pts).

🔴 ROCE has fallen from 88.7% to 13.6% over 3 years (-75.1 pts).

🟢 Total Debt has shrunk at 12.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 13.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹680 Cr

Total Liabilities

₹348 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹98 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

5.5%

Insider Holding

61.3%

Corporate Actions

Ex-Dividend Date

11 Sept 2009

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 mixed4 general

Kamat Hotels (India) Ltd. Share Price Gain: Key Analysis

Univest, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Be Wary Of Kamat Hotels (India) (NSE:KAMATHOTEL) And Its Returns On Capital

Simply Wall Street, 24 Jan

Kamat Hotels profit surges 131% in Q1FY26 as EBITDA margin expands to 27.17%

scanx.trade, 11 AugResults

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

BENARAS Stock Price and Chart — NSE:BENARAS

TradingView, 17 Aug

Kamat Hotels India Stock Signals to Watch This Week

Univest, 25 Sept

KAMAT HOTELS Share Price

Upstox, 22 Mar

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation · Risk

WeakGrowth

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 — Debt / EBITDA stays below 2x · see Key things to watch ↑