LGT Global Hospitality Limited

Consumer Cyclical — Travel Services · BSE

₹33.00−₹1.99 (−5.69%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

LGT Global Hospitality Limited engages in tour packages operations and event management business in India. It operates through two segments: Tour Packages and Other Allied Services, and Hotels & Hospitality.

IndustryTravel Services

SectorConsumer Cyclical

Employees139

Annual revenue₹137 Cr

How does it make money?

Turns over ₹137 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 139 employees supports ₹98.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹98.6 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +125% while net margin moved -31% 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+125%

Margin effect-31%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

88/ 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

5.3x

1.3Y Median

8.8x

16 monthly readings · mean 8.9x · range 5.6x–14.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 1.3y median of 8.8x. 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 92% below the peer median of 69.2x.

vs. its own history

Cheap

8.8x median over 16 months · -40%

vs. sector peers

Cheap

69.2x median of 4 peers · -92%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

2.8x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.25x 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 82.6% to 11.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 102.3% to 18.1% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 291% over 3 years, from ₹3 Cr to ₹10 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 351% against revenue up 125% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 40% 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 92% 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?

Sales are being booked faster than collected
Receivables are up 351% against revenue up 125%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 82.6% to 11.9%. 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.
Several serious flags at once
2 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

1Revenue growth stays above 23% a year✓ 31.0% CAGR
Latest reported year was 46.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 2 neutral · 2 weak

Market Cap

₹31 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.3x

Cheap

Cheap against the generic band

P/B Ratio

0.80x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.2

Profitable

Profitable on a per-share basis

ROE

18.1%

Strong

Strong capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

46.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-67.3%

Falling

Profits are shrinking

Dividend Yield

0.76%

Modest

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

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.6%

Good

Assets are working hard

Operating Margin

2.4%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

2.55

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

35.5 / 37.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹89 Cr	₹100 Cr	₹137 Cr	+31.0%
EBITDA	₹4 Cr	₹5 Cr	₹8 Cr	₹8 Cr	+24.4%
EBITDA Margin	6.9%	6.1%	8.0%	5.9%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹5 Cr	₹5 Cr	+15.7%
EPS	₹3.17	₹3.87	₹5.56	—	—
ROE	82.6%	50.2%	41.9%	11.9%	—
ROCE	102.3%	61.5%	54.7%	18.1%	—
Total Debt	₹3 Cr	₹3 Cr	₹10 Cr	₹10 Cr	+57.6%
Free Cash Flow	₹1 Cr	₹2 Cr	-₹1 Cr	-₹11 Cr	—

🟢 Revenue has grown at 31.0% a year over 3 years.

🟢 EBITDA has grown at 24.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.9% over 3 years.

🟢 PAT (Net Profit) has grown at 15.7% a year over 3 years.

🔴 ROE has fallen from 82.6% to 11.9% over 3 years (-70.7 pts).

🔴 ROCE has fallen from 102.3% to 18.1% over 3 years (-84.2 pts).

🔴 Total Debt has grown at 57.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹57 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.9%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

25 Sept 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

2 positive1 mixed3 general

LGT Global Hospitality sets September 25 as dividend record date

scanx.trade, 07 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

LGT Global Hospitality (BSE:544489) - Stock Analysis

Simply Wall Street, 25 Apr

LGT GLOBAL HOSPITALITY LIMITED Share Price

Upstox, 05 May

Sri Lotus Developers, Noble Polymers, ADS Diagnostics Dividend Record Date: Last Day To Buy Shares To Qualify

NDTV Profit, 24 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

LGT Global Hospitality approves acquisition of LGT Group stake

scanx.trade, 06 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

F&O Ban List Today: Kaynes, LIC Housing, Manappuram, SAIL

Univest, 25 Sept

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

StrongFinancial Health · Growth · Valuation

MiddlingProfitability

WeakBusiness Quality · 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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑