Cindrella Hotels (526373)
Slow GrowerScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹57.7 |
| Market Cap | ₹20.77 Cr |
| P/E Ratio | 70.52 |
| ROCE | 3.91% |
| ROE | 2.28% |
| Dividend Yield | 1.89% |
| Profit Growth | 0% |
| Debt/Equity | — |
| Sales Growth | 8.33% |
| 52-Week Range | ₹46.65 — ₹68.49 |
| Sector | Leisure Services |
| Book Value | ₹31.49 |
Strengths
- Sales grew 8.33%, showing some top-line momentum.
- Pays a small dividend yield of 1.89% despite weak earnings.
- Book value of ₹31.49 per share provides a tangible asset base.
- Latest quarter is breakeven, not a loss, so cash is not being burned.
Concerns
- P/E of 70.52 with 0.00% profit growth means the valuation is extremely stretched.
- ROE of 2.28% and ROCE of 3.91% show poor capital efficiency.
- Piotroski F-Score of 4/9 signals weak financial health.
- Latest quarter net profit is ₹0 Cr on ₹3 Cr sales, with a PEG of 8.47 indicating overvaluation.
AI Analysis
I start with Cindrella Hotels, a tiny ₹21 crore hotelier in a capital-hungry industry. My first test is always what a business earns on the money shareholders put in. Here, it fails: return on equity is only 2.28%, and return on capital employed is just 3.91%. A fixed deposit can do better without the daily headaches of running a hotel. The latest quarter tells the story: ₹3 crore of sales and ₹0 crore of net profit. With profit growth at 0.00%, there are no compounding earnings working for me. What is the market doing? It is asking ₹57.70 per share, which is 70.52 times earnings. That is not value; that is hope. The PEG ratio of 8.47 confirms that the 8.33% sales growth is nowhere near enough to justify the multiple. Book value is ₹31.49 per share, so I am paying an 83% premium to net assets for a business earning a poor return on those assets. The 1.89% dividend yield is modest compensation, but not enough for a stock this small and financially uncertain. Graham would also look at the Piotroski F-Score of 4 out of 9 and say the fundamentals are weak. I agree. No debt-to-equity ratio is available, so I cannot even verify whether the balance sheet is conservative. This is not the kind of business I can value with confidence. It may one day improve if hotel cycles turn and profits materialize, but at 70 times stagnant earnings, there is no margin of safety. I would rather keep Cindrella Hotels on my watchlist than pay a rich price for a slow grower with poor returns.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer