KHFM Hospitality (KHFM)

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

Key Financials

Strengths

• Profit growth of 24.85% is well ahead of sales growth of 10.56%, suggesting improving operating leverage.
• Piotroski F-Score of 7/9 indicates decent financial health and earnings quality on available metrics.
• Latest quarter net profit of ₹2 Cr on ₹52 Cr sales shows the business is currently profitable.
• Trading near the lower end of its 52-week range (₹44.00–₹86.70) offers a more reasonable entry than at the top.

Concerns

• P/E of 41.83 and PEG of 2.36 imply a rich valuation relative to the modest growth rate.
• Zero dividend yield means shareholders rely entirely on future capital gains.
• Promoter holding of 37.17% is modest for a small-cap, raising governance and alignment concerns.
• Missing data on book value, debt/equity, and ROE prevents a complete margin-of-safety assessment.

AI Analysis

At ₹52, KHFM Hospitality is a small-cap trading at a P/E of 41.83. That immediately fails my smell test: I am being asked to pay roughly 42 times earnings for a company whose sales growth is only 10.56%. Yes, profit grew 24.85%, which is encouraging, and the Piotroski score of 7/9 suggests the reported numbers are not obviously weak. But as Graham said, price is what you pay; value is what you get. With a PEG of 2.36, even the growth is not cheap. The company earns a ROCE of just 10.35%—respectable but hardly a wide-moat franchise. The latest quarter shows sales of ₹52 Cr and net profit of ₹2 Cr; that is a thin net margin, and at this valuation the market is capitalizing a very small profit into a ₹153 Cr market cap. There is no dividend, so the only return is future capital appreciation. Promoter holding at 37.17% is below what I like to see in a small-cap; I prefer owners who eat their own cooking. I also have incomplete data—no book value, no debt-to-equity, no ROE—so I cannot apply my usual margin-of-safety test. I would not call this a stalwart. It may be a fast grower if execution continues, but at this price the market has already priced in a good deal of optimism. I prefer paying a fair price for a wonderful business, not a promising story at an ugly multiple. I would watch whether sales growth accelerates, profit margins expand, and whether promoters raise or reduce their stake. Until then, KHFM is a pass.

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