Robust Hotels Limited

Consumer Cyclical — Lodging · NSE

₹162.15+₹1.10 (+0.68%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

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 modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Robust Hotels Limited engages in the hotel business in India. The company operates Hyatt Regency Chennai hotel.

IndustryLodging

SectorConsumer Cyclical

Employees319

Annual revenue₹146 Cr

How does it make money?

Turns over ₹146 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹46 left at the operating level before interest, tax and depreciation. Each of its 319 employees supports ₹45.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹45.6 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?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 +37% while net margin moved -67% 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+37%

Margin effect-67%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 11.0% is steady
✗ Profit has declined at 23.6% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 1.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

60/ 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

10.6x

3Y Median

18.6x

40 monthly readings · mean 33.9x · range 3.3x–100.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 18.6x. 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 85% below the peer median of 69.2x.

vs. its own history

Cheap

18.6x median over 40 months · -43%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 29.2% to 45.6% over 3 years.
Cash generation is improving
Free cash flow is up 89% over 3 years.
Return on capital is rising
ROCE has improved from 1.8% to 5.5%.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 7.9% to 3.3% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Debt is increasingFinancial
Total debt is up 33% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 55% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 29.2% to 45.6%. 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 43% 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 85% 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 ₹43 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?

Returns on shareholder capital are falling
ROE has dropped from 7.9% to 3.3%. 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.
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

1Revenue growth stays above 8% a year✓ 11.0% CAGR
Latest reported year was 1.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 44%✓ 45.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹43 Cr
Profit that never becomes cash eventually stops being profit.

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

₹280 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.6x

Cheap

Cheap against the generic band

P/B Ratio

0.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹15.29

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

1.8%

Modest

Modest growth

Profit Growth (YoY)

51.9%

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

₹43 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

20.0%

Good

Healthy core-business profitability

Net Margin

18.0%

Good

Strong bottom-line conversion

Current Ratio

6.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

167.0 / 168.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹106 Cr	₹121 Cr	₹134 Cr	₹146 Cr	+11.0%
EBITDA	₹31 Cr	₹36 Cr	₹63 Cr	₹66 Cr	+28.8%
EBITDA Margin	29.2%	30.0%	46.8%	45.6%	—
PAT (Net Profit)	₹55 Cr	₹5 Cr	₹16 Cr	₹25 Cr	-23.6%
EPS	₹31.99	₹2.74	₹9.52	₹14.29	-23.6%
ROE	7.9%	0.7%	2.3%	3.3%	—
ROCE	1.8%	2.3%	4.4%	5.5%	—
Total Debt	₹114 Cr	₹159 Cr	₹154 Cr	₹152 Cr	+10.0%
Free Cash Flow	₹23 Cr	₹20 Cr	₹49 Cr	₹43 Cr	+23.6%

🟢 Revenue has grown at 11.0% a year over 3 years.

🟢 EBITDA has grown at 28.8% a year over 3 years.

🟢 EBITDA Margin has risen from 29.2% to 45.6% over 3 years (+16.4 pts).

🔴 PAT (Net Profit) has shrunk at 23.6% a year over 3 years.

🔴 EPS has shrunk at 23.6% a year over 3 years.

🔴 ROE has fallen from 7.9% to 3.3% over 3 years (-4.6 pts).

🟢 ROCE has risen from 1.8% to 5.5% over 3 years (+3.6 pts).

🔴 Total Debt has grown at 10.0% a year over 3 years.

🟢 Free Cash Flow has grown at 23.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹926 Cr

Total Liabilities

₹184 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹46 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.4%

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

1 positive1 mixed4 general

Robust Hotels Ltd. Share Price: technical and sector view

Univest, 15 Oct

Robust Hotels 52 Week Low Streak: RHL price, peers, value

Univest, 16 Oct

Robust Hotels Q1 Results: Net profit rises 52% YoY to ₹6.1 crore

scanx.trade, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

ixigo Q2 profit at Rs 63 cr on robust show in hotel booking biz

The Economic Times, 17 OctResults

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

Robust Hotels Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Robust (RHL.NS) Idles at ₹165.18 — Low Volume Session 2026-09-30 - Value Area High

https://www.siam.in/, 30 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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability

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

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑