Advent Hotels (ADVENTHTL)
TurnaroundFairStock Score: 8/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹141.58 |
| Market Cap | ₹763.72 Cr |
| P/E Ratio | 12.09 |
| ROCE | 3.28% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -79.8% |
| Debt/Equity | 0.78 |
| Sales Growth | 0% |
| Promoter Holding | 47.69% |
| 52-Week Range | ₹112 — ₹345.05 |
| Sector | Leisure Services |
| Book Value | ₹4,35,672.3 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At first glance, Advent Hotels looks like a classic value trap wearing a growth disguise. The stock trades at ₹159.80, near the low of its ₹118.10–₹345.05 52-week range, with a market cap of ₹1,046 Cr. A trailing P/E of 35.68 is not cheap for a company whose sales are growing only 4.02%. The reported ROCE of 3.28% also tells me the hotel assets are generating little return on capital, which is dangerous in a capital-intensive and cyclical industry. Profit growth of 175.27% sounds wonderful, but I always ask: from what base? The latest quarter shows sales of ₹115 Cr and net profit of ₹30 Cr. That single quarter’s profit roughly equals the entire trailing earnings implied by the P/E—around ₹29 Cr. Either the business has inflected sharply, or the trailing figures are distorted by a weak past. I need evidence, not hope. The Piotroski F-Score of 7/9 is genuinely encouraging; it suggests a healthier balance sheet and better cash conversion than last year. Promoter holding of 47.69% gives moderate confidence that insiders share my interest. But I cannot ignore missing data: ROE and debt/equity are unavailable, and the stated book value of ₹435,672.30 is absurd next to a ₹159.80 share price. I therefore treat P/B as meaningless. With no dividend, shareholders depend entirely on the cycle delivering higher earnings. A hotel business earning 3.28% ROCE must be bought at a deeply discounted price to compensate for cyclical volatility. At 35 times trailing earnings, there is no margin of safety. This is a cyclical/turnaround situation, not a predictable compounder. In Graham’s words, the investor’s chief problem is himself. I refuse to pay for a recovery that is not yet proven.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer