Sayaji Hotels (Pune) Limited

Consumer Cyclical — Lodging · BSE

₹855.00+₹23.20 (+2.79%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sayaji Hotels (Pune) Limited owns and operates a hotel. The company was founded in 2018 and is based in Indore, India.

IndustryLodging

SectorConsumer Cyclical

Annual revenue₹81 Cr

How does it make money?

Turns over ₹81 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation.

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 25.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.2% 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 +24% while net margin moved +13% 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+24%

Margin effect+13%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROE of 19.2% clears the 15% mark
✗ ROE has fallen by 9.4 points over the period

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

73/ 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

12.5x

3Y Median

14.4x

35 monthly readings · mean 13.8x · range 2.0x–20.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 14.4x. 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 82% below the peer median of 69.2x.

vs. its own history

Fair

14.4x median over 35 months · -13%

vs. sector peers

Cheap

69.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.9x

PEG

1.05

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 97% over 3 years.
High return on capital employed
ROCE of 25.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.28x 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 28.5% to 19.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 38.6% to 25.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 237% against revenue up 24% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.3% 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.
Deleveraging frees up earnings
Debt is down 97% 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 82% 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 ₹3 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?

Sales are being booked faster than collected
Receivables are up 237% against revenue up 24%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.4% 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 28.5% to 19.2%. 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.
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 33%✓ 35.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.4% CAGR
Latest reported year was 6.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹260 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.5x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹68.18

Profitable

Profitable on a per-share basis

ROE

19.2%

Strong

Strong capital efficiency

ROCE

25.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

6.0%

Modest

Modest growth

Profit Growth (YoY)

14.5%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.78

Comfortable

Healthy short-term liquidity

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

853.9 / 843.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹66 Cr	₹70 Cr	₹77 Cr	₹81 Cr	+7.4%
EBITDA	₹23 Cr	₹25 Cr	₹25 Cr	₹29 Cr	+7.7%
EBITDA Margin	34.8%	35.1%	33.0%	35.1%	—
PAT (Net Profit)	₹14 Cr	₹17 Cr	₹17 Cr	₹19 Cr	+12.0%
EPS	₹45.34	₹54.41	₹55.63	₹63.69	+12.0%
ROE	28.5%	25.5%	20.7%	19.2%	—
ROCE	38.6%	32.7%	27.6%	25.3%	—
Total Debt	₹8 Cr	₹2 Cr	₹0 Cr	₹0 Cr	-67.5%
Free Cash Flow	₹9 Cr	₹7 Cr	₹2 Cr	₹3 Cr	-34.4%

🟢 Revenue has grown at 7.4% a year over 3 years.

🟢 EBITDA has grown at 7.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 35.1% over 3 years.

🟢 PAT (Net Profit) has grown at 12.0% a year over 3 years.

🟢 EPS has grown at 12.0% a year over 3 years.

🔴 ROE has fallen from 28.5% to 19.2% over 3 years (-9.4 pts).

🔴 ROCE has fallen from 38.6% to 25.3% over 3 years (-13.3 pts).

🟢 Total Debt has shrunk at 67.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 34.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

96.5%

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 mixed4 general

Sayaji Hotel (Pune) Ltd. (SHPLPUNE) Share Price Rises 12.32% Today

Univest, 29 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.

Sayaji Hotels Expands Footprint with New Bengaluru Property: Shares Surge Over 2%

Dalal Street Investment Journal, 07 AprPrice 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.

Sayaji Hotels appoints Manish Joshi & Associates as subsidiary auditor

scanx.trade, 03 Sept

ADVENTHTL Stock Price and Chart — NSE:ADVENTHTL

TradingView, 06 Jul

Sayaji Hotels initiates postal ballot for ₹500 crore borrowing limit and RPTs

scanx.trade, 16 Sept

Bollywood Bash 2025: Sayaji Hotel Pune Turns New Year’s Eve into a Blockbuster Night

Passionate In Marketing, 29 Dec

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.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability · 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.

All 5 tripwires holding · see Key things to watch ↑