Sayaji Hot. Pune (544090)

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

Key Financials

Strengths

• ROE of 27.14% and ROCE of 30.79% indicate strong capital efficiency.
• Piotroski F-Score of 7/9 suggests solid overall financial health.
• Trailing P/E of 12.91 is modest against current reported earnings.
• Latest quarter shows positive momentum with ₹22 Cr sales and ₹6 Cr net profit.

Concerns

• Sales growth is just 3.97%, and PEG of 2.25 implies the growth is expensive.
• P/B of 3.80 against book value of ₹233.81 leaves little margin of safety.
• No dividend, so total returns rely entirely on price appreciation.
• Debt/Equity is N/A, leaving leverage and balance-sheet risk unclear in a capital-intensive cyclical sector.

AI Analysis

At first glance, Sayaji Hotels Pune looks like an efficient business. Return on equity of 27.14% and ROCE of 30.79% are impressive; a Piotroski score of 7 suggests sound fundamentals. The trailing P/E of 12.91 appears reasonable, but I must be cautious. Sales grew only 3.97% and profit 7.52%—hardly a fast grower. With a P/B of 3.80 and PEG of 2.25, Mr. Market is asking a premium for modest growth. This is a hotel business, inherently cyclical; a low P/E in a cyclical can be a value trap if occupancy and room rates are near peak. Book value is ₹233.81, so at ₹889.40 we are paying 3.8 times book—hardly Graham's margin of safety. There is no dividend, so shareholders depend entirely on capital appreciation and price re-rating. Debt/equity is not disclosed, which bothers me; I cannot assess financial leverage properly. On the positive side, the latest quarter shows ₹22 Cr sales and ₹6 Cr profit, annualising roughly to ₹24 Cr profit versus market cap of ₹271 Cr—supporting the current earnings yield but not providing a wide margin. I would not call this a Stalwart; growth is too low. It is a cyclical business with decent efficiency but no obvious durable moat. I need evidence of consistent pricing power, stronger revenue growth, and a cleaner balance sheet before committing. In Buffett's words, it's far better to buy a wonderful company at a fair price, but this looks like a fairly good business at an uncertain price. I would keep it on the watchlist and wait for a better entry or more data.

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