Vikram Kamats Hospitality Limited

Consumer Cyclical — Restaurants · BSE

₹24.87−₹0.64 (−2.51%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Vikram Kamats Hospitality Limited engages in the restaurant business in India.

IndustryRestaurants

SectorConsumer Cyclical

Employees171

Annual revenue₹51 Cr

How does it make money?

Turns over ₹51 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 171 employees supports ₹29.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin31.4%

Net margin0.3%

Revenue / employee₹29.6 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 4.1% 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.

ROCE4.1%

ROE0.2%

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 +112% while net margin moved -96% 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+112%

Margin effect-96%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.02x is on the heavy side
✗ Current ratio of 0.76 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.3x — little room if profits dip
✗ Debt has grown 245.8% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

42/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

177.6x

3Y Median

52.2x

40 monthly readings · mean 89.2x · range 37.0x–396.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 240% above its 3y median of 52.2x. 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 157% above the peer median of 69.2x.

vs. its own history

Expensive

52.2x median over 40 months · +240%

vs. sector peers

Expensive

69.2x median of 4 peers · +157%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

177.6x

P/B

0.74x

EV/EBITDA

6.5x

PEG

—

Dividend Yield

1.21%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 11.4% to 31.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention8

Debt is rising
Total debt is up 4035% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 11.1% to 0.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.8% to 4.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 193% against revenue growth of 112% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 230% against revenue growth of 112% — stock may not be moving.
Valuation above its historical average
At 177.6x the stock trades 240% above its own median of 52.2x.
Short-term liquidity is tight
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Red Flags

8 items require attention · 5 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 4035% over 3 years, from ₹1 Cr to ₹60 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 193% against revenue up 112% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 230% against revenue up 112% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 91% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 60% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.4% to 31.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 3.8x 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 193% against revenue up 112%. 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 240% 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 11.1% to 0.2%. 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

1Revenue growth stays above 21% a year✓ 28.5% CAGR
Latest reported year was 15.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

177.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.74x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.14

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

4.1%

Weak

Low return on total capital employed

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

15.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.21%

Modest

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

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹24.87

Operating Margin

5.8%

Average

Average margins

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.76

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

29.7 / 33.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹24 Cr	₹27 Cr	₹37 Cr	₹51 Cr	+28.5%
EBITDA	₹3 Cr	₹5 Cr	₹9 Cr	₹16 Cr	+80.1%
EBITDA Margin	11.4%	19.8%	24.9%	31.4%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-54.8%
EPS	₹1.4	₹1.54	₹0.53	₹0.09	-60.0%
ROE	11.1%	7.4%	1.3%	0.2%	—
ROCE	15.8%	6.7%	3.6%	4.1%	—
Total Debt	₹1 Cr	₹32 Cr	₹49 Cr	₹60 Cr	+245.8%
Free Cash Flow	₹0 Cr	-₹19 Cr	-₹20 Cr	-₹10 Cr	—

🟢 Revenue has grown at 28.5% a year over 3 years.

🟢 EBITDA has grown at 80.1% a year over 3 years.

🟢 EBITDA Margin has risen from 11.4% to 31.4% over 3 years (+20.0 pts).

🔴 PAT (Net Profit) has shrunk at 54.8% a year over 3 years.

🔴 EPS has shrunk at 60.0% a year over 3 years.

🔴 ROE has fallen from 11.1% to 0.2% over 3 years (-10.9 pts).

🔴 ROCE has fallen from 15.8% to 4.1% over 3 years (-11.7 pts).

🔴 Total Debt has grown at 245.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹135 Cr

Total Liabilities

₹76 Cr

Total Debt

₹60 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.3%

Corporate Actions

Dividend Rate

₹0.3

Ex-Dividend Date

19 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

6 general

Vikram Kamats Hospitality provides web link for FY26 Annual Report access

scanx.trade, 14 Oct

Five Consecutive Losses Push Vikram Kamats Hospitality Ltd to a New 52-Week Low

MarketsMojo, 16 Oct

52 Week Low Shares BSE | 52 Week Low Today | Shares Trading 52 Week Low BSE

Livemint, 16 Oct

Vikram Kamats Hospitality opens Urban Dhaba outlet in Mumbai

scanx.trade, 05 Jul

Vikram Kamats partners HPCL to expand highway dining

BW Hotelier, 14 Feb

Vikram Kamats Hospitality approves FY26 accounts, reappoints MD

scanx.trade, 31 Aug

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🔴Financial HealthStretched5.5/20

🔴GrowthWeak8.9/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding6.2/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 21% a year28.5% CAGR
✓EBITDA margin holds above 29%31.4%
✗Debt / EBITDA falls below 3x3.8x
✗Free cash flow remains positive-₹10 Cr
✗Interest cover stays above 3x1.3x