Silver Pearl Hospitality & Luxury Spaces Limited

Consumer Cyclical — Lodging · BSE

₹4.53₹0.00 (0.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, 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. Cash generation is currently 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 Silver Pearl Hospitality & Luxury Spaces Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Silver Pearl Hospitality & Luxury Spaces Limited operates as a hospitality company in India. The company operates mid-priced hotel sector, upper-midscale, midscale and economy hotel; and a café in Rakchham. Its properties are located in Kinnaur, Himachal Pradesh, and Goa.

IndustryLodging

SectorConsumer Cyclical

Employees60

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 60 employees supports ₹1.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹1.7 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 1.3% 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 +14% while net margin moved -497% 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+14%

Margin effect-497%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.3% — barely ahead of inflation

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

78/ 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

28.3x

2Y Median

65.8x

27 monthly readings · mean 59.2x · range 34.0x–81.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 2y median of 65.8x. 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 59% below the peer median of 69.2x.

vs. its own history

Cheap

65.8x median over 27 months · -57%

vs. sector peers

Cheap

69.2x median of 4 peers · -59%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.0x

PEG

—

Red Flags

3 items require attention · 2 high · 1 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.5 points, from 39.5% to 34.0%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 57% 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 59% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 39.5% to 34.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 4.3% 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 32%✓ 34.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was 110.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 8%✗ 1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 65.8x✓ 28.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 4 neutral · 3 weak

Market Cap

₹4 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.3x

Fair

Fairly valued against the generic band

P/B Ratio

0.26x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

1.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

110.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

175.0%

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 burning

Spending more cash than the operations bring in

More Metrics

ROA

-0.7%

Weak

Assets generate little profit

Operating Margin

-35.4%

Weak

Thin margins leave little room for error

Net Margin

12.2%

Good

Strong bottom-line conversion

Current Ratio

30.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.35

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4.5 / 4.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+4.3%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-0.8%
EBITDA Margin	39.5%	29.8%	7.0%	34.0%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	—
EPS	₹-0.04	₹0.13	₹-0.21	—	—
ROE	-0.2%	0.8%	-1.2%	0.9%	—
ROCE	-0.3%	0.8%	-1.1%	1.3%	—
Free Cash Flow	-₹6 Cr	-₹2 Cr	₹6 Cr	-₹1 Cr	—

🟢 Revenue has grown at 4.3% a year over 3 years.

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

🔴 EBITDA Margin has fallen from 39.5% to 34.0% over 3 years (-5.5 pts).

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

🟢 ROE has risen from -0.2% to 0.9% over 3 years (+1.1 pts).

🟢 ROCE has risen from -0.3% to 1.3% over 3 years (+1.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.8%

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

5 general

Silver Pearl Hospitality returns to profit in FY26

scanx.trade, 28 May

Silver Pearl Hospitality turns profitable in FY26 with ₹12.49 lakh net profit

scanx.trade, 31 Aug

Silver Pearl Hospitality & Lux Share Price

Upstox, 07 Sept

Silver Pearl Hospitality IPO Date, GMP, Review, Price, Allotment & Analysis

IPO Watch, 06 Jun

ROBUST HOTELS Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 26 Apr

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Profitability

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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑