TGB Banquets and Hotels Limited

Consumer Cyclical — Lodging · NSE

₹9.50+₹0.12 (+1.28%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

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, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

TGB Banquets and Hotels Limited provides restaurant, banquet, and hotel services in India. The company operates The Grand Bhagwati hotel located in Ahmedabad. It also engages in the operation of restaurants under the Café Piano and Perq.

IndustryLodging

SectorConsumer Cyclical

Employees99

Annual revenue₹38 Cr

How does it make money?

Turns over ₹38 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 99 employees supports ₹38.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin21.7%

Net margin3.7%

Revenue / employee₹38.9 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 3.4% 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.

ROCE3.4%

ROE1.8%

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 +0% while net margin moved +5% 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+0%

Margin effect+5%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.8% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

66/ 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

19.0x

3Y Median

22.8x

40 monthly readings · mean 23.9x · range 11.5x–37.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 17% below its 3y median of 22.8x. 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 73% below the peer median of 69.2x.

vs. its own history

Fair

22.8x median over 40 months · -17%

vs. sector peers

Cheap

69.2x median of 4 peers · -73%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.0x

P/B

0.36x

EV/EBITDA

4.7x

PEG

11.01

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 22% over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 38% against revenue growth of 0% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🟡Inventory building faster than salesFinancial
Inventory up 38% against revenue up 0% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 22% 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 73% 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 ₹0 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 0.1% 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.

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

1EBITDA margin holds above 20%✓ 21.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 0.1% CAGR
Latest reported year was -6.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

5 good · 3 neutral · 3 weak

Market Cap

₹28 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.36x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.5

Profitable

Profitable on a per-share basis

ROE

1.8%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

-6.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

16.7%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹9.5

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

3.8%

Average

Average bottom-line conversion

Current Ratio

3.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.4 / 9.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹38 Cr	₹36 Cr	₹37 Cr	₹38 Cr	+0.1%
EBITDA	₹8 Cr	₹3 Cr	₹9 Cr	₹8 Cr	-0.4%
EBITDA Margin	22.0%	8.7%	23.2%	21.7%	—
PAT (Net Profit)	₹1 Cr	-₹4 Cr	₹2 Cr	₹1 Cr	+1.7%
EPS	₹0.47	₹-1.22	₹0.66	₹0.5	+2.1%
ROE	1.8%	-4.8%	2.6%	1.8%	—
ROCE	3.6%	-2.6%	3.9%	3.4%	—
Total Debt	₹16 Cr	₹8 Cr	₹16 Cr	₹12 Cr	-7.8%
Free Cash Flow	₹5 Cr	₹9 Cr	₹10 Cr	₹0 Cr	-88.2%

🟡 Revenue has been broadly flat over 3 years (0.1% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.4% a year).

🟡 EBITDA Margin has held roughly flat at 21.7% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.7% a year).

🟢 EPS has grown at 2.1% a year over 3 years.

🟡 ROE has held roughly flat at 1.8% over 3 years.

🟡 ROCE has held roughly flat at 3.4% over 3 years.

🟢 Total Debt has shrunk at 7.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 88.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹112 Cr

Total Liabilities

₹35 Cr

Total Debt

₹12 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

45.5%

Corporate Actions

Ex-Dividend Date

22 Sept 2011

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 mixed3 negative1 general

TGB Banquets Q2FY27 Results: Net profit down 52% YoY to ₹9.90 lakh

scanx.trade, 17 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

TGB Banquets & Hotels Ltd Downgraded to Sell Amid Weak Fundamentals and Mixed Technicals

MarketsMojo, 17 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

TGB Banquets and Hotels Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

TGB Banquets And Hotels Ltd. (TGBHOTELS) Share Price Surges 12.34% Today

Univest, 27 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.

Q2 results today: HDFC Bank, ICICI Bank, Axis Bank among 18 firms on Oct 17

Business Standard, 17 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

TGB Banquets & Hotels standalone net profit declines 58.24% in the March 2026 quarter

Business Standard, 19 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-6.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong14.7/20

🔴GrowthWeak7.5/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above 20%21.7%
✗Interest cover stays above 3x2.0x
✗Revenue growth stays above 4% a year0.1% CAGR
✓Free cash flow remains positive₹0 Cr
✓Debt / EBITDA stays below 2x1.5x