Viceroy Hotels Limited

Consumer Cyclical — Lodging · NSE

₹158.00+₹2.07 (+1.33%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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, though profits are falling even as sales grow. Cash generation is currently 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 Viceroy Hotels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Viceroy Hotels Limited engages in the hoteliering business in India. It owns and operates hotels that offer rooms, food and beverage, and banquet services under the Marriott and Courtyard by Marriott, and Marriott Executive Apartments brands.

IndustryLodging

SectorConsumer Cyclical

Annual revenue₹137 Cr

How does it make money?

Turns over ₹137 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation.

EBITDA margin31.9%

Net margin13.4%

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 5.5% 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.

ROCE5.5%

ROE6.9%

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 +21% while net margin moved -27570% 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+21%

Margin effect-27570%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.7% — barely ahead of inflation
✗ Profit fell 76.5% in the latest year

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

54/ 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

49.5x

2Y Median

57.6x

28 monthly readings · mean 127.3x · range 10.1x–316.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 2y median of 57.6x. 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 28% below the peer median of 69.2x.

vs. its own history

Fair

57.6x median over 28 months · -14%

vs. sector peers

Cheap

69.2x median of 4 peers · -28%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

49.5x

P/B

3.99x

EV/EBITDA

33.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.6% to 31.9% over 3 years.
Debt is being paid down
Total debt is down 48% over 3 years.
Return on capital is rising
ROCE has improved from 0.5% to 5.5%.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹107 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 14465% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.6% to 31.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 48% 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 28% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 6.7% 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 30%✓ 31.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹107 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 77.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹1,213 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.19

Profitable

Profitable on a per-share basis

ROE

6.9%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.99x

Moderate

Moderate leverage

Revenue Growth (YoY)

77.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-76.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹107 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹158

Operating Margin

14.5%

Average

Average margins

Net Margin

14.0%

Good

Strong bottom-line conversion

Current Ratio

1.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

97%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

135.2 / 126.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

85.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹113 Cr	₹131 Cr	₹126 Cr	₹137 Cr	+6.7%
EBITDA	₹10 Cr	₹20 Cr	₹37 Cr	₹44 Cr	+65.0%
EBITDA Margin	8.6%	15.3%	29.3%	31.9%	—
PAT (Net Profit)	-₹0 Cr	₹2 Cr	₹78 Cr	₹18 Cr	—
EPS	₹-0.86	₹0.43	₹11.54	₹2.71	—
ROE	—	3.6%	31.9%	6.9%	—
ROCE	0.5%	0.6%	8.7%	5.5%	—
Total Debt	₹512 Cr	₹179 Cr	₹52 Cr	₹264 Cr	-19.8%
Free Cash Flow	-₹23 Cr	₹2 Cr	-₹16 Cr	-₹107 Cr	—

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 65.0% a year over 3 years.

🟢 EBITDA Margin has risen from 8.6% to 31.9% over 3 years (+23.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹18 Cr.

🟢 EPS has turned positive, from ₹-0.86 to ₹2.71.

🟢 ROE has risen from 3.6% to 6.9% over 3 years (+3.3 pts).

🟢 ROCE has risen from 0.5% to 5.5% over 3 years (+5.1 pts).

🟢 Total Debt has shrunk at 19.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹557 Cr

Total Liabilities

₹290 Cr

Total Debt

₹264 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹58 Cr

Capex

-₹165 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.7%

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

Viceroy Hotels Upper Circuit Today: Price, Data and Peers

Univest, 12 Oct

Viceroy Hotels Board Approves ₹107 Crore Rights Issue for Current Shareholders

Sahi, 29 Jun

Viceroy Hotels shares rise 2% as Zerodha founders Nithin, Nikhil Kamath pick 6.72% stake

The Economic Times, 06 OctPrice 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.

Zerodha founders Kamath brothers bet on Viceroy Hotels with 6.72% stake after insolvency-led crisis: What changed?

Livemint, 06 Oct

Viceroy Hotels lends ₹38.45 crore to subsidiary at 8.75% interest

scanx.trade, 06 Oct

Viceroy Hotels Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 29 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟡Financial HealthAdequate11.8/20

🔴GrowthWeak7.6/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair6.9/15

🔴RiskHigh4.1/10

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.

This thesis breaks if

✓EBITDA margin holds above 30%31.9%
✗Debt / EBITDA falls below 3x6.1x
✗Free cash flow remains positive-₹107 Cr
✓Interest cover stays above 3x3.8x
✓Revenue growth stays above 5% a year6.7% CAGR