Royale Manor Hotels and Industries Limited

Consumer Cyclical — Lodging · BSE

₹24.50+₹0.02 (+0.08%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by 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. 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Royale Manor Hotels and Industries Limited engages in the hotel and restaurant business in India. It operates The Ummed, a five-star hotel located in Ahmedabad.

IndustryLodging

SectorConsumer Cyclical

Employees129

Annual revenue₹22 Cr

How does it make money?

Turns over ₹22 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 129 employees supports ₹17.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.4 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?Little sign of one

Returns on capital of 5.5% 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 +1% while net margin moved -38% 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+1%

Margin effect-38%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.4% — barely ahead of inflation
✗ Profit has declined at 14.2% a year

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

70/ 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

20.1x

3Y Median

20.3x

40 monthly readings · mean 20.4x · range 13.6x–29.5x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 20.3x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 71% below the peer median of 69.2x.

vs. its own history

Fair

20.3x median over 40 months · -1%

vs. sector peers

Cheap

69.2x median of 4 peers · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 27% over 3 years.
Very low debt
Debt/Equity of 0.11x 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 7.3% to 3.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.1% to 5.5% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.1 points, from 30.0% to 22.8%.
🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 27% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 30.0% to 22.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 0.4% 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.
Returns on shareholder capital are falling
ROE has dropped from 7.3% to 3.8%. 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

1EBITDA margin holds above 21%✓ 22.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.4% CAGR
Latest reported year was 14.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹49 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.76x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.22

Profitable

Profitable on a per-share basis

ROE

3.8%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

14.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-4.6%

Weak

Thin margins leave little room for error

Net Margin

10.5%

Good

Strong bottom-line conversion

Current Ratio

4.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

26.3 / 27.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹23 Cr	₹23 Cr	₹22 Cr	+0.4%
EBITDA	₹7 Cr	₹7 Cr	₹6 Cr	₹5 Cr	-8.3%
EBITDA Margin	30.0%	30.9%	25.5%	22.8%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹3 Cr	₹2 Cr	-14.2%
EPS	₹2.11	₹2.21	₹1.56	₹1.21	-16.9%
ROE	7.3%	7.2%	5.1%	3.8%	—
ROCE	10.1%	9.9%	7.1%	5.5%	—
Total Debt	₹9 Cr	₹9 Cr	₹6 Cr	₹7 Cr	-10.1%
Free Cash Flow	₹9 Cr	₹1 Cr	-₹7 Cr	₹2 Cr	-39.1%

🟡 Revenue has been broadly flat over 3 years (0.4% a year).

🔴 EBITDA has shrunk at 8.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.0% to 22.8% over 3 years (-7.1 pts).

🔴 PAT (Net Profit) has shrunk at 14.2% a year over 3 years.

🔴 EPS has shrunk at 16.9% a year over 3 years.

🔴 ROE has fallen from 7.3% to 3.8% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 10.1% to 5.5% over 3 years (-4.5 pts).

🟢 Total Debt has shrunk at 10.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 39.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹75 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.4%

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 negative4 general

Royale Manor Hotels & Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Royale Manor adopts FY26 financials, reappoints Champawat at 35th AGM

scanx.trade, 28 Sept

Royale Manor Hotels & Industries standalone net profit declines 13.81% in the March 2026 quarter

Business Standard, 30 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Royale Manor Hotels net profit falls 23% in FY26 to ₹239.2 million

scanx.trade, 05 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

India's Fastest-Growing Companies of 2026

Time Magazine, 17 Feb

SAVERA Stock Price and Chart — BSE:SAVERA

TradingView, 28 Jan

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Revenue growth stays above 4% a year; ROCE stays above 8% · see Key things to watch ↑