Mac Hotels (541973)

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

Key Financials

Strengths

• Sales growth of 71.54% and profit growth of 84% show strong recent momentum.
• Piotroski F-Score of 7/9 indicates improving operational and financial health.
• ROCE of 9.29% is positive and reasonable for a capital-intensive hotel business.
• PEG of 1.26 suggests the stock is not outrageously priced if the high growth persists.
• Small market cap of ₹48 Cr gives niche growth potential.

Concerns

• P/E of 97.69 is extremely expensive, especially with latest quarter net profit at ₹0 Cr.
• Current price ₹41.21 is below the stated 52-week range of ₹65-92, raising data quality or distress concerns.
• Missing promoter holding, book value, and debt/equity data makes financial health assessment incomplete.
• No dividend and a cyclical, capital-intensive hotel model reduce margin of safety.

AI Analysis

Let me assess Mac Hotels the way I would any business. The growth numbers jump out: sales up 71.54% and profits up 84%. But absolute figures speak more soberly. The latest quarter had sales of ₹2 crore and net profit of ₹0 crore. At ₹48 crore market cap, the stock trades at 97.69 times earnings. That is not a margin of safety; that is a premium for perfection. A hotel business is capital-intensive, cyclical and generally lacks pricing power unless it owns exceptional locations or brands. I see no evidence of such a moat. ROCE is 9.29%, okay but not compelling. We are given no book value, no debt-to-equity, no promoter holding, and no return on equity. I cannot judge financial health properly. The Piotroski F-score of 7 is mildly encouraging, and the PEG of 1.26 suggests the market has priced in continued fast growth. But 84% profit growth from a tiny, near-zero quarterly profit base is not a dependable compounder. Also, the current price of ₹41.21 is below the stated 52-week range of ₹65-92. That makes me suspect a data error or a sharp fall, and it only increases my caution. With no dividend and a valuation that leaves no room for disappointment, this is not a business I would put money into today. Benjamin Graham taught us to buy with a margin of safety. Here, the margin is on the seller's side. I will wait for either a much lower price, a clear track record of consistent earnings, or full transparency on the balance sheet. Until then, Mac Hotels belongs on the watchlist, not in the portfolio.

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