Howard Hotels (526761)

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

Key Financials

Strengths

• Positive book value of ₹9.54 per share provides some tangible asset backing.
• Latest quarter reported a net profit of ₹1 Cr, showing the hotel is not in a loss-making spiral.
• Sales are still growing modestly at 1.33%, indicating the operation has not collapsed.
• Low market cap of ₹21 Cr could attract special-situation buyers if assets are monetised.

Concerns

• P/E of 50.12 and PEG of 37.68 are extreme for a company with profit growth of -20.41%.
• ROE of 4.68% and ROCE of 6.09% are below risk-free returns, suggesting capital is being poorly employed.
• Zero dividend means minority shareholders receive no cash return.
• Piotroski F-Score of 4/9 indicates weak financial health; also, debt/equity and promoter holding data are missing.

AI Analysis

When I look at Howard Hotels, I see a small, capital-intensive business in an industry where the only true barriers are location and brand. Neither appears present here. The numbers tell a simple story: sales grew at just 1.33%, profits fell 20.41%, and return on equity is 4.68%. In India, I can earn more in a fixed deposit with no business risk. The hotel earns 6.09% on capital employed; that is far below what good management should achieve, and it suggests no moat — customers are not loyal to a company that must compete on price. Valuation is the bigger problem. A P/E of 50.12 for a company with negative profit growth is unreasonable; the PEG ratio of 37.68 shouts overvaluation. Paying 2.30 times book for a business earning under 5% on equity is the opposite of a margin of safety. There is zero dividend, so the only hope is capital appreciation — and with a 52-week range of ₹18 to ₹33.90, that is speculation, not investment. The latest quarter shows ₹5 Cr sales and ₹1 Cr profit, but the reported trailing P/E implies far lower annual earnings. I cannot trust that number without the full annual report. The Piotroski score of 4/9 reinforces my skepticism. Benjamin Graham would say price is what you pay, value is what you get. Here you are paying ₹21.96 for ₹9.54 of book value and deteriorating operations. This is neither a wonderful business at a fair price nor a fair business at a wonderful price. I need a much lower price or clear signs of a turnaround before Howard Hotels earns a place in my portfolio. For now, it fails the test.

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