Saj Hotels (SAJHOTELS)
CyclicalScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹43 |
| Market Cap | ₹70.63 Cr |
| P/E Ratio | 25.05 |
| ROCE | 5.55% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -14.29% |
| Debt/Equity | — |
| Sales Growth | -4.56% |
| Promoter Holding | 64.27% |
| 52-Week Range | ₹24.8 — ₹47 |
| Sector | Leisure Services |
Strengths
- Promoter holding of 64.27% aligns management interests with minority shareholders.
- Latest quarter was profitable: ₹1 crore net profit on ₹5 crore sales.
- Price has recovered from the 52-week low of ₹24.80 to ₹43.00, indicating some market interest.
- Listing on NSE/BSE provides basic transparency and liquidity for retail investors.
Concerns
- Sales declined 4.56% and profits declined 14.29%, showing shrinking fundamentals.
- ROCE of only 5.55% suggests weak returns on capital employed for a hotel asset-heavy business.
- Piotroski F-Score of 3/9 points to poor financial health and operational discipline.
- Dividend yield is zero, so investors rely entirely on price appreciation for returns.
AI Analysis
When I look at Saj Hotels, I remind myself that a wonderful business must earn high returns on capital. Here, ROCE is only 5.55%, and with sales down 4.56% and profits down 14.29%, this is not a compounding machine. The latest quarter shows ₹5 crore in sales and ₹1 crore in net profit, but the annual P/E of 25.05 means the market is paying a rich multiple for a shrinking earnings base. Graham taught me to buy with a margin of safety. At ₹43, I don't see one. The Piotroski score of 3 out of 9 further tells me the financial health is weak. Profitability, asset turnover, and leverage indicators are not pointing in the right direction. On the positive side, promoters own 64.27%, so their interests are aligned with shareholders. The price has moved up from a 52-week low of ₹24.80, but price action is not the same as intrinsic value. There is no dividend, so the only way to earn is capital appreciation, which depends on a turnaround in this cyclical hotel business. Without book value and debt figures, I can't calculate the safety net. In a capital-hungry industry like hotels, with low returns and declining profits, I would rather wait. This is a cyclical, not a stalwart. If the business can stabilise sales, improve ROCE, and generate consistent cash flow, it may deserve another look. For now, the figures do not support investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer