Mac Hotels Limited

Consumer Cyclical — Lodging · BSE

₹75.90₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mac Hotels Limited engages in owning, operating, and managing hotels, restaurants, and resorts in Goa. Mac Hotels Limited was incorporated in 1990 and is based in Panaji, India.

IndustryLodging

SectorConsumer Cyclical

Employees22

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹67 left at the operating level before interest, tax and depreciation. Each of its 22 employees supports ₹14.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹14.5 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 4.0% 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 -40% while net margin moved -841% 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-40%

Margin effect-841%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 15.8% a year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

37/ 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

128.6x

2Y Median

130.0x

28 monthly readings · mean 119.0x · range 66.7x–172.0x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 130.0x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 86% above the peer median of 69.2x.

vs. its own history

Fair

130.0x median over 28 months · -1%

vs. sector peers

Expensive

69.2x median of 4 peers · +86%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.6x

PEG

6.53

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 14.0% to 67.4% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 21.3% to 4.0% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 103% over 3 years, from ₹3 Cr to ₹5 Cr.
🔴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 103% against revenue up -40% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 91% against revenue up -40% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 88% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.0% to 67.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 103% against revenue up -40%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 86% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 65%✓ 67.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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 · 3 neutral · 5 weak

Market Cap

₹48 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

128.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.59

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

-0.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

19.7%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.5%

Weak

Assets generate little profit

Operating Margin

1.0%

Weak

Thin margins leave little room for error

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

62.2 / 68.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

74.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹6 Cr	₹3 Cr	₹3 Cr	-15.8%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+42.1%
EBITDA Margin	14.0%	13.8%	29.8%	67.4%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.25	₹1.05	₹0.5	—	—
ROE	—	133.8%	2.4%	2.8%	—
ROCE	21.3%	26.6%	5.6%	4.0%	—
Total Debt	₹3 Cr	₹2 Cr	₹1 Cr	₹5 Cr	+26.7%
Free Cash Flow	₹0 Cr	₹1 Cr	-₹5 Cr	-₹9 Cr	—

🔴 Revenue has shrunk at 15.8% a year over 3 years.

🟢 EBITDA has grown at 42.1% a year over 3 years.

🟢 EBITDA Margin has risen from 14.0% to 67.4% over 3 years (+53.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🔴 ROE has fallen from 133.8% to 2.8% over 3 years (-131.0 pts).

🔴 ROCE has fallen from 21.3% to 4.0% over 3 years (-17.2 pts).

🔴 Total Debt has grown at 26.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.7%

Corporate Actions

Ex-Dividend Date

16 Aug 2019

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 mixed4 general

Mac Hotels 36th AGM voting results: both resolutions passed unanimously

scanx.trade, 30 SeptResults

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

Zerodha founders Nithin, Nikhil Kamath pick up 6.72% stake in Viceroy Hotels

The Economic Times, 05 Oct

Viceroy Hotels shares rise 2% as Zerodha founders Nithin, Nikhil Kamath pick 6.72% stake

The Economic Times, 06 OctPrice 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.

Is It Too Late To Consider Freddie Mac (FMCC) After Recent Price Swings And DCF Estimate?

Yahoo Finance, 02 Apr

ROBUST HOTELS Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 26 Apr

SAVERA Stock Price and Chart — BSE:SAVERA

TradingView, 28 Jan

Watch Items

Revenue growth is negative (-0.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑