Emerald Leisures (507265)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• Piotroski F-Score of 7/9 suggests improving recent operational health
• Sales growth of 8.29% and profit growth of 9.27% show positive momentum
• ROE of 12.42% is reasonable for a capital-intensive hotel business
• Stock at 52-week high reflects strong market interest and potential recovery expectations

Concerns

• Latest quarter reports a net loss of ₹2 Cr on sales of ₹5 Cr, making P/E meaningless
• ROCE of only 4.82% signals weak return on invested capital
• Market cap of ₹371 Cr is very high relative to quarterly sales of ₹5 Cr
• Zero dividend, no book value, and no promoter/debt data create serious information gaps

AI Analysis

Let me examine Emerald Leisures through a Graham-Buffett lens. The first thing that strikes me is that I cannot calculate a price-to-earnings ratio because the latest quarter shows a net loss of ₹2 Cr on sales of just ₹5 Cr. In the hotel business, one weak quarter may not condemn a company, but my mentor taught me to treat uncertainty as a friend only when the price provides a margin of safety. At ₹247.35, with a market cap of ₹371 Cr, the market is paying roughly 18 times annualised latest-quarter sales—hardly a bargain. ROCE is only 4.82%, meaning the company is earning less on capital than a fixed deposit after tax. ROE of 12.42% looks better, but I need audited annual numbers; with no book value or debt-equity ratio disclosed, I cannot assess the balance sheet. The Piotroski score of 7 out of 9 is a point in favour, suggesting recent operational improvements, and sales and profit growth of 8.29% and 9.27% are mildly encouraging. Yet hotel companies are cyclical creatures of the economy, and with zero dividend yield, I am being paid nothing to wait. The stock sits at the top of its 52-week range; that may reflect optimism, but optimism is not part of my analytical toolkit. I would need strong evidence that this loss is temporary, that occupancy and room rates are recovering, and that the balance sheet is sound. Without full details on promoter holding and debt, I cannot pass this as a compounder. It is a cyclical to watch, not a buy at this price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer