Savera Industries Limited

Consumer Cyclical — Lodging · BSE

₹162.00+₹2.00 (+1.25%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Savera Industries Limited engages in the hoteliering business in India. It operates Savera Hotel with various facilities comprising rooms, dining areas, bars, amenities, banquets, and event facilities. The company was founded in 1968 and is based in Chennai, India.

IndustryLodging

SectorConsumer Cyclical

Employees646

Annual revenue₹102 Cr

How does it make money?

Turns over ₹102 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 646 employees supports ₹15.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹15.8 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?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +66% 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+66%

Margin effect-38%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 13.2% is moderate
✗ ROE has fallen by 4.5 points over the period

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

51/ 100

Fair

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

17.7x

3Y Median

14.5x

40 monthly readings · mean 14.3x · range 7.8x–19.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 23% above its 3y median of 14.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 74% below the peer median of 69.2x.

vs. its own history

Expensive

14.5x median over 40 months · +23%

vs. sector peers

Cheap

69.2x median of 4 peers · -74%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.3x

PEG

19.41

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.7% to 13.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.2% to 16.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 80% over 3 years, from ₹4 Cr to ₹7 Cr.
🔴High leverageFinancial
Debt/Equity of 7.71x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 4.5 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 106% against revenue up 66% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 93% against revenue up 66% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 74% 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?

Margins are being competed away
EBITDA margin has fallen from 25.1% to 20.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.71x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 106% against revenue up 66%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 23% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 17.7% to 13.2%. 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.

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

1Revenue growth stays above 14% a year✓ 18.5% CAGR
Latest reported year was 30.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 20.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹193 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.98x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.13

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.71x

High

High leverage

Revenue Growth (YoY)

30.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.6%

Falling

Profits are shrinking

Dividend Yield

1.85%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.2%

Average

Average margins

Net Margin

10.0%

Average

Average bottom-line conversion

Current Ratio

2.19

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.07

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

159.9 / 163.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹72 Cr	₹80 Cr	₹102 Cr	+18.5%
EBITDA	₹15 Cr	₹16 Cr	₹18 Cr	₹21 Cr	+11.0%
EBITDA Margin	25.1%	21.5%	22.4%	20.6%	—
PAT (Net Profit)	₹12 Cr	₹10 Cr	₹13 Cr	₹13 Cr	+0.9%
EPS	₹10.46	₹8.64	₹11.1	₹10.75	+0.9%
ROE	17.7%	13.2%	15.0%	13.2%	—
ROCE	21.2%	16.8%	18.0%	16.7%	—
Total Debt	₹4 Cr	₹4 Cr	₹6 Cr	₹7 Cr	+21.6%
Free Cash Flow	₹9 Cr	₹5 Cr	₹10 Cr	₹9 Cr	-1.7%

🟢 Revenue has grown at 18.5% a year over 3 years.

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

🔴 EBITDA Margin has fallen from 25.1% to 20.6% over 3 years (-4.5 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.9% a year).

🟡 EPS has been broadly flat over 3 years (0.9% a year).

🔴 ROE has fallen from 17.7% to 13.2% over 3 years (-4.5 pts).

🔴 ROCE has fallen from 21.2% to 16.7% over 3 years (-4.5 pts).

🔴 Total Debt has grown at 21.6% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-1.7% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹118 Cr

Total Liabilities

₹21 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.2%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

11 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

2 positive4 general

Savera Industries Ltd Upgraded to Hold by MarketsMOJO on Technical and Valuation Improvements

MarketsMojo, 16 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Savera Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Savera Industries Q1 Results: Net profit rises 35% YoY to ₹381.41 lakh

scanx.trade, 08 AugResults

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

Savera Ind Standalone June 2026 Net Sales at Rs 28.79 crore, up 30.4% Y-o-Y

Moneycontrol.com, 13 Aug

Savera Industries shareholders approve all 57th AGM resolutions

scanx.trade, 18 Sept

Dolly Khanna’s portfolio sees steady gains in CY26; 5 stocks rise up to 25%

The Economic Times, 28 May

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingFinancial Health · Growth · Profitability · Valuation · 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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑