Asian Hotels (N) (ASIANHOTNR)

FairStock Score: 8/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 5.22% shows some top-line resilience despite a difficult hotel environment.
• Latest quarter sales of ₹91 Cr provide a meaningful revenue base if operating leverage can improve.
• Book value per share is positive at ₹95.24, offering a thin asset cushion despite losses.
• ROCE is positive at 6.66%, indicating operations are not entirely value-destructive at the operating level.

Concerns

• P/E is 0.00 because earnings are negative; latest quarter net loss is ₹56 Cr and profit growth is -34.36%.
• Debt/Equity of 3.38 is dangerously high, especially with ROCE of only 6.66%.
• ROE of -1750.47% signals massive erosion of shareholder equity.
• Promoter holding of 0.00% and zero dividend mean no promoter alignment and no return to shareholders.

AI Analysis

At first glance, this is not a business I would call wonderful. Asian Hotels (North) earned nothing—there is no P/E because earnings are negative, and the latest quarter shows a net loss of ₹56 Cr on sales of ₹91 Cr. That is a huge amount of fixed cost and interest swallowing every rupee of revenue. Graham taught me to pay a price that gives a margin of safety; here the price is ₹300 but book value is only ₹95.24, so I am paying more than three times book for a loss-making balance sheet. ROE of -1750.47% is a brutal warning that shareholder equity is being destroyed. The debt/equity of 3.38 makes me very uncomfortable, and with ROCE at only 6.66%, the business cannot reliably earn its cost of capital. Sales growth of 5.22% is one bright spot, but profit growth is -34.36%, so growth is not flowing to the bottom line. Promoter holding at 0.00% is a major red flag—if the people who run the company have no stake, minority shareholders are left to carry the risk. There is no dividend, a Piotroski score of 4/9, and a FairStock Score of 5/100; every quality check fails. This could be a cyclical hotel company at a bad point in the cycle, but cyclical businesses are only attractive when the balance sheet is strong enough to survive the trough. This one has too much debt and no promoter skin in the game. I need evidence of a genuine turnaround: narrower losses, lower leverage, and improving cash generation. Without that, the price is not an opportunity; it is a trap.

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