Sinclairs Hotels Limited

Consumer Cyclical — Lodging · NSE

₹73.80−₹0.28 (−0.38%)

DalalBaazaar Score

51 / 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sinclairs Hotels Limited operates in the hospitality sector in India.

IndustryLodging

SectorConsumer Cyclical

Employees447

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 447 employees supports ₹13.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹13.3 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 9.4% 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 +10% while net margin moved -74% 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+10%

Margin effect-74%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.3% — barely ahead of inflation
✗ Profit has declined at 33.8% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

50/ 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

35.1x

3Y Median

27.5x

32 monthly readings · mean 28.7x · range 18.7x–46.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 28% above its 3y median of 27.5x. 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 49% below the peer median of 69.2x.

vs. its own history

Expensive

27.5x median over 32 months · +28%

vs. sector peers

Cheap

69.2x median of 4 peers · -49%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

19.1x

PEG

1.29

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 67% over 3 years.
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 24.3% to 7.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.3% to 9.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 218% over 3 years, from ₹11 Cr to ₹34 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.5 points, from 42.9% to 36.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 11.7x to 5.1x.
🟡Profit is decliningFinancial
Net profit is down 71% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 49% 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 ₹19 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 42.9% to 36.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 28% 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.
Growth barely outpaces inflation
Revenue compounding at 3.3% 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.
Returns on shareholder capital are falling
ROE has dropped from 24.3% to 7.5%. 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 34%✓ 36.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.3% CAGR
Latest reported year was 28.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.4%
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

5 good · 5 neutral · 1 weak

Market Cap

₹378 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.1

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

9.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

28.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.08%

Modest

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

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

31.7%

Good

Healthy core-business profitability

Net Margin

16.9%

Good

Strong bottom-line conversion

Current Ratio

7.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.25

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

77.3 / 78.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹54 Cr	₹56 Cr	₹53 Cr	₹59 Cr	+3.3%
EBITDA	₹23 Cr	₹23 Cr	₹19 Cr	₹22 Cr	-2.2%
EBITDA Margin	42.9%	41.6%	36.2%	36.5%	—
PAT (Net Profit)	₹31 Cr	₹21 Cr	₹14 Cr	₹9 Cr	-33.8%
EPS	₹5.72	₹3.87	₹2.73	₹1.77	-32.4%
ROE	24.3%	19.1%	12.1%	7.5%	—
ROCE	27.3%	21.6%	13.7%	9.4%	—
Total Debt	₹11 Cr	₹10 Cr	₹21 Cr	₹34 Cr	+47.1%
Free Cash Flow	₹12 Cr	₹15 Cr	₹8 Cr	₹19 Cr	+18.6%

🟢 Revenue has grown at 3.3% a year over 3 years.

🔴 EBITDA has shrunk at 2.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 42.9% to 36.5% over 3 years (-6.5 pts).

🔴 PAT (Net Profit) has shrunk at 33.8% a year over 3 years.

🔴 EPS has shrunk at 32.4% a year over 3 years.

🔴 ROE has fallen from 24.3% to 7.5% over 3 years (-16.8 pts).

🔴 ROCE has fallen from 27.3% to 9.4% over 3 years (-17.9 pts).

🔴 Total Debt has grown at 47.1% a year over 3 years.

🟢 Free Cash Flow has grown at 18.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹167 Cr

Total Liabilities

₹46 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹21 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.5%

Corporate Actions

Dividend Rate

₹0.8

Ex-Dividend Date

08 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

1 mixed5 general

Sinclairs Hotels Share Price Forecast to 2030

Univest, 29 Jul

Sinclairs Hotel Standalone June 2026 Net Sales at Rs 20.15 crore, up 28.39% Y-o-Y

Moneycontrol.com, 10 Aug

Promoter Navin Chand Suchanti raises stake in Sinclairs Hotels to 6.95%

scanx.trade, 11 Jun

Sinclairs Hotels (SINCLAIR.NS) Climbs 1.07% to ₹82.38: Stock Approaches Key Resistance on NSE - Death Cross

https://www.siam.in/, 31 Aug

Why Is Sinclairs Hotels Share Price Falling Key Reasons 2026

Univest, 01 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Sinclairs Hotels re-appoints Khandelwal as Independent Director

scanx.trade, 06 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth · Valuation

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.

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