Krishna GVK Luxury Hotels Limited

Consumer Cyclical — Lodging · NSE

₹324.55+₹1.80 (+0.56%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Krishna GVK Luxury Hotels Limited operates as an owner and operator of luxury hotels in India. The company operates three hotels in Hyderabad, namely Taj Krishna; Taj Deccan; and Vivanta Begumpet; Taj Club House, and Taj Chandigarh, and also operates Taj Santacruz.

IndustryLodging

SectorConsumer Cyclical

Employees410

Annual revenue₹501 Cr

How does it make money?

Turns over ₹501 Cr a year. Of every ₹100 of sales, about ₹82 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 410 employees supports ₹1.22 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.22 Cr

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 27.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 39.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +286% 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+33%

Margin effect+286%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

5.0x

3Y Median

21.9x

40 monthly readings · mean 21.3x · range 4.9x–32.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 77% below its 3y median of 21.9x. 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 93% below the peer median of 69.2x.

vs. its own history

Cheap

21.9x median over 40 months · -77%

vs. sector peers

Cheap

69.2x median of 4 peers · -93%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.0x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 17.3% to 39.8%.
Return on capital is rising
ROCE has improved from 21.0% to 27.1%.
High return on capital employed
ROCE of 27.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 9.03x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.5 points, from 39.1% to 32.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 122% against revenue up 33% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹31 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 68% against revenue up 33% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.1% 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.
Priced below its own history
The stock trades 77% 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 93% 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 39.1% to 32.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.03x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 122% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 31%✓ 32.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹31 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.8% CAGR
Latest reported year was 55.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 3 neutral · 3 weak

Market Cap

₹2,035 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.0x

Cheap

Cheap against the generic band

P/B Ratio

1.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹65.2

Profitable

Profitable on a per-share basis

ROE

39.8%

Strong

Strong capital efficiency

ROCE

27.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.03x

High

High leverage

Revenue Growth (YoY)

55.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-38.5%

Falling

Profits are shrinking

Dividend Yield

0.62%

Modest

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

Free Cash Flow

-₹31 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

111.9x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

26.8%

Good

Healthy core-business profitability

Net Margin

73.1%

Good

Strong bottom-line conversion

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

322.4 / 334.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹378 Cr	₹402 Cr	₹442 Cr	₹501 Cr	+9.8%
EBITDA	₹148 Cr	₹133 Cr	₹154 Cr	₹163 Cr	+3.4%
EBITDA Margin	39.1%	33.0%	34.9%	32.7%	—
PAT (Net Profit)	₹80 Cr	₹74 Cr	₹117 Cr	₹408 Cr	+72.3%
EPS	₹12.73	₹14.78	₹18.69	₹65.09	+72.3%
ROE	17.3%	13.6%	17.9%	39.8%	—
ROCE	21.0%	17.2%	18.0%	27.1%	—
Total Debt	₹141 Cr	₹108 Cr	₹44 Cr	₹128 Cr	-3.1%
Free Cash Flow	₹82 Cr	₹84 Cr	₹75 Cr	-₹31 Cr	—

🟢 Revenue has grown at 9.8% a year over 3 years.

🟢 EBITDA has grown at 3.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 39.1% to 32.7% over 3 years (-6.5 pts).

🟢 PAT (Net Profit) has grown at 72.3% a year over 3 years.

🟢 EPS has grown at 72.3% a year over 3 years.

🟢 ROE has risen from 17.3% to 39.8% over 3 years (+22.5 pts).

🟢 ROCE has risen from 21.0% to 27.1% over 3 years (+6.1 pts).

🟢 Total Debt has shrunk at 3.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹82 Cr to -₹31 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,780 Cr

Total Liabilities

₹360 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

₹173 Cr

Capex

-₹204 Cr

Shareholding (proxy)

Institutional Holding

2.8%

Insider Holding

72.4%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

01 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

Krishna GVK Luxury Hotels (BSE:532390) - Stock Analysis

Simply Wall Street, 10 Sept

TajGVK Hotels shares: Stock down 26% in 1 year, but Monarch sees 49% upside - Here's why | Check share price target

Livemint, 06 OctPrice 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.

TajGVK Hotels shareholders approve name change to Krishna GVK Luxury

scanx.trade, 09 Sept

Taj GVK Hotels and Resorts Share Price Outlook: Where It Could Be in 3 Years

Univest, 03 Aug

ROC approves Taj GVK name change to Krishna GVK Luxury Hotels

scanx.trade, 31 Jul

Taj GVK Hotels & Resorts Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑