Pecos Hotels and Pubs Limited

Consumer Cyclical — Restaurants · BSE

₹193.95+₹31.95 (+19.72%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. 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, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Pecos Hotels and Pubs Limited operates restaurants and pubs under the Pecos brand in India. It sells beers; as well as food and other beverages through outlets. The company was founded in 1987 and is based in Bengaluru, India.

IndustryRestaurants

SectorConsumer Cyclical

Employees32

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 32 employees supports ₹37.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.4 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.9% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +36% while net margin moved +4% 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+36%

Margin effect+4%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 1.00 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

74/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.5x

3Y Median

23.9x

40 monthly readings · mean 23.2x · range 10.1x–40.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 23.9x. 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

23.9x median over 40 months · -35%

vs. sector peers

Cheap

69.2x median of 4 peers · -78%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.7x

PEG

1.27

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 17.2% to 19.3% over 3 years.
High return on capital employed
ROCE of 26.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 24.3% to 21.1% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 80% against revenue up 36% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 17.2% to 19.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 35% 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?

Returns on shareholder capital are falling
ROE has dropped from 24.3% to 21.1%. 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 8% a year✓ 10.7% CAGR
Latest reported year was 19.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 23%✓ 26.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 23.9x✓ 15.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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 · 4 neutral · 0 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.52

Profitable

Profitable on a per-share basis

ROE

22.9%

Strong

Strong capital efficiency

ROCE

26.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

19.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

52.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.06%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

14.7%

Good

Assets are working hard

Operating Margin

18.5%

Good

Healthy core-business profitability

Net Margin

13.7%

Good

Strong bottom-line conversion

Current Ratio

4.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.00

Market-like

Moves roughly in line with the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

170.9 / 211.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

72.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹10 Cr	₹11 Cr	₹12 Cr	+10.7%
EBITDA	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+15.0%
EBITDA Margin	17.2%	16.8%	18.2%	19.3%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+12.2%
EPS	₹8.87	₹8.88	₹10.92	—	—
ROE	24.3%	21.0%	21.7%	21.1%	—
ROCE	26.4%	25.8%	26.0%	26.4%	—
Free Cash Flow	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-1.0%

🟢 Revenue has grown at 10.7% a year over 3 years.

🟢 EBITDA has grown at 15.0% a year over 3 years.

🟢 EBITDA Margin has risen from 17.2% to 19.3% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 12.2% a year over 3 years.

🔴 ROE has fallen from 24.3% to 21.1% over 3 years (-3.2 pts).

🟡 ROCE has held roughly flat at 26.4% over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-1.0% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.9%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

18 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

4 positive1 mixed1 general

Speciality Restaurants Share Price Fall in Micro Cap Segment

Univest, 13 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Dividend alert! Last day to buy Cochin Shipyard, LT Foods among nearly 90 stocks for dividends. Do you own

The Economic Times, 18 SeptCapital return

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

Dividend stocks alert, record date: Last chance to buy Cochin Shipyard, Anupam Rasayan, Balu Forge, and others | List

Livemint, 17 SeptCapital return

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

Dividend Stocks This Week: Cochin Shipyard, Hindustan Copper, PG Electroplast & More — Check Full List

NDTV Profit, 13 SeptCapital return

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

Barbeque-Nation Hospitality Ltd. Share Price at 52-Week High

Univest, 07 Aug

Rs. 257.54/sh Dividend Stocks Today: Cochin Shipyard and 94 more Stocks to Watch on September 18

Goodreturns, 18 SeptCapital return

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑