UVS Hospitality (531652)
TurnaroundFairStock Score: 51/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹147.1 |
| Market Cap | ₹551.58 Cr |
| P/E Ratio | 19.2 |
| ROCE | 21.57% |
| ROE | -7.44% |
| Dividend Yield | 0% |
| Profit Growth | 22.73% |
| Debt/Equity | — |
| Sales Growth | 21.77% |
| 52-Week Range | ₹72.55 — ₹161.95 |
| Sector | Finance |
| Book Value | ₹13.54 |
Strengths
- Latest quarter net profit of ₹6 Cr on sales of ₹36 Cr shows a 16.7% margin and improving operating momentum.
- Sales and profit growth of ~22% each, with PEG at 0.86, indicate reasonably priced near-term expansion.
- ROCE of 21.57% suggests strong capital efficiency at the operating level.
- Piotroski F-Score of 7/9 points to improving financial health and reduced distress risk.
Concerns
- ROE is -7.44% despite positive book value, meaning shareholder equity is not earning a return currently.
- Price-to-book of 10.86 against book value of ₹13.54 leaves no margin of safety.
- Dividend yield is 0%, so all returns depend on price appreciation.
- Debt/Equity and promoter holding are not available, creating transparency and leverage uncertainty for an NBFC.
AI Analysis
Let me start with what is certain. At ₹147.10, I am paying roughly ₹552 Cr for a business whose book value is only about ₹50.8 Cr, or ₹13.54 per share. That is a price-to-book of 10.86. Graham taught me to treat a high price-to-book with suspicion unless the business can earn exceptional returns on that book. Here the reported ROE is -7.44%, so shareholders are not currently earning a return on equity. That alone disqualifies this as a classic value investment. Yet there are signs of an operating turnaround. The latest quarter shows sales of ₹36 Cr and net profit of ₹6 Cr, a healthy 16.7% margin, with sales and profit growth around 22%. ROCE of 21.57% suggests underlying capital efficiency is real, and the Piotroski score of 7/9 supports improving financials. PEG of 0.86 makes the growth look reasonably priced, but I must question durability. A small NBFC with no dividend, no promoter-holding data, and no debt-to-equity disclosure offers little margin of safety. The 52-week range tells me the market has already re-rated this stock from ₹72.55 to nearly ₹162. A turnaround can be rewarding, but today's price is not a bargain; it is a bet on sustained improvement. I need more quarters of expanding profit, positive ROE, and growing book value before I can call it a Graham-style purchase.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer