Ras Resorts and Apart Hotels Limited

Consumer Cyclical — Lodging · BSE

₹53.58−₹2.82 (−5.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ras Resorts and Apart Hotels Limited owns and operates a hotel and resort in India. It operates through Hoteliering and Real Estate segments. The company operates the Ras Resorts on the bank of the river Daman Ganga.

IndustryLodging

SectorConsumer Cyclical

Employees9

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹1.44 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.44 Cr

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 4.2% 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 +2% while net margin moved -6555% 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+2%

Margin effect-6555%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.7% is weak

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

72/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

37.7x

2Y Median

68.3x

28 monthly readings · mean 73.8x · range 40.6x–121.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 2y median of 68.3x. 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 45% below the peer median of 69.2x.

vs. its own history

Cheap

68.3x median over 28 months · -45%

vs. sector peers

Cheap

69.2x median of 4 peers · -45%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.6x

PEG

1.30

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 10.2% to 12.9% over 3 years.
Debt is being paid down
Total debt is down 61% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.17x — earnings must service borrowings before shareholders see anything.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.70 — 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 10.2% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 61% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 45% 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 45% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 8.17x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 0.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 0.8% CAGR
Latest reported year was 22.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

5 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.08x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.42

Profitable

Profitable on a per-share basis

ROE

2.7%

Weak

Weak capital efficiency

ROCE

4.2%

Weak

Low return on total capital employed

Debt/Equity

8.17x

High

High leverage

Revenue Growth (YoY)

22.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.0%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

0.70

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

55.0 / 55.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹13 Cr	₹13 Cr	₹13 Cr	+0.8%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+9.1%
EBITDA Margin	10.2%	10.9%	11.7%	12.9%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-0.02	₹0.46	₹0.82	₹1.32	—
ROE	-0.0%	0.9%	1.7%	2.7%	—
ROCE	2.7%	3.4%	4.0%	4.2%	—
Total Debt	₹5 Cr	₹5 Cr	₹4 Cr	₹2 Cr	-26.8%
Free Cash Flow	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-0.4%

🟡 Revenue has been broadly flat over 3 years (0.8% a year).

🟢 EBITDA has grown at 9.1% a year over 3 years.

🟢 EBITDA Margin has risen from 10.2% to 12.9% over 3 years (+2.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.02 to ₹1.32.

🟢 ROE has risen from -0.0% to 2.7% over 3 years (+2.7 pts).

🟢 ROCE has risen from 2.7% to 4.2% over 3 years (+1.6 pts).

🟢 Total Debt has shrunk at 26.8% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.4% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.3%

Corporate Actions

Ex-Dividend Date

22 Mar 2016

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 positive3 mixed2 general

Ras Resorts Board Approves Voluntary Delisting Proposal from BSE

scanx.trade, 02 May

TGB Banquets And Hotels Ltd. (TGBHOTELS) Share Price Surges 12.34% Today

Univest, 27 JulPrice 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.

Ras Resorts Board Approves FY26 Results, Publishes in Newspapers, Eyes Delisting

scanx.trade, 16 MayResults

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

Powerica posts over 27% YoY rise in Q1 PAT; DG set order book stands at Rs 1,700 crore

Business Standard, 08 AugOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

RAS RESORTS & APART HOTELS LTD Share Price

Upstox, 06 Apr

Q1 results 2026: Bharti Airtel to LIC among companies to declare Q1 results next week; check full list here

Livemint, 02 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑