Espire Hospi (532016)

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

Key Financials

Strengths

• Latest quarter net profit of ₹8 Cr on sales of ₹41 Cr implies a strong ~19.5% net margin if sustained.
• ROCE of 16.74% suggests decent operational capital efficiency.
• Profit growth of 193.55% and Piotroski F-Score of 6/9 point to recent fundamental improvement.
• Small market cap of ₹172 Cr could offer a niche growth opportunity if the recovery is real.

Concerns

• Price at ₹127.17 is below the 52-week low of ₹201.60, a severe negative signal or possible data inconsistency.
• P/E of 52.22 and P/B of 44.47 are rich; book value of ₹2.86 provides a very thin equity cushion.
• Sales growth of -0.53% shows no top-line expansion, so the profit surge may be one-off or cost-driven.
• Zero dividend, unknown debt/equity, and unknown promoter holding leave minority investors with little transparency.

AI Analysis

Let me be honest: these figures make me uneasy. Espire Hospi trades at ₹127.17, yet its 52-week range is ₹201.60 to ₹620.00. A price below the stated 52-week low is a warning flag, not a bargain signal. The hotel business is a cyclical, capital-intensive one, and without pricing power or a known brand, I need a strong balance sheet and visible cash flows. Instead, I get contradictory numbers. P/E of 52.22 suggests trailing earnings around ₹3.3 Cr, but the latest quarter shows net profit of ₹8 Cr on sales of ₹41 Cr. Either earnings have just inflected sharply, or there's something I don't understand. Graham would demand an explanation before investing a rupee. The ROE of 263% looks magnificent, but it is an artifact of book value of just ₹2.86 per share. With P/B at 44.47, I'm paying 44 times equity for a hotel business with negative sales growth. ROCE of 16.74% is respectable, but a single year's profit growth of 193.55% from a flat revenue base is usually cyclical recovery or cost-cutting, not durable compounding. There is no dividend to compensate me while I wait, debt/equity is unknown, and promoter holding is unknown. The Piotroski score of 6/9 is mildly positive, but it cannot outweigh the valuation and data gaps. Even the PEG of 0.27 is seductive only if the growth is sustainable, and I have no reason to believe that. If the quarterly ₹8 Cr profit annualizes, the stock looks cheap, but the trailing P/E says otherwise. When the numbers don't reconcile, I pass. I need a margin of safety, and a price below the 52-week low with flat sales offers none.

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