Samhi Hotels (SAMHI)

FairStock Score: 40/100 — MIXED

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

Key Financials

Strengths

• P/B of 1.25 is only modestly above book value of ₹130.79, with price near the lower part of the 52-week range of ₹127-₹227.
• Sales growth of 15.63% and latest quarter net profit of ₹48 Cr on sales of ₹338 Cr show clear operating momentum.
• Piotroski F-Score of 7/9 suggests healthy earnings and balance-sheet quality signals, while PEG of 0.51 indicates earnings are outpacing valuation.
• Profit growth of 74.40% reflects a strong cyclical recovery in the hotel business.

Concerns

• Reported promoter holding of 0.00% means no owner-operator skin in the game, a serious governance red flag.
• ROE of 5.69% is weak; paying a P/E of 23.17 for this level of return on equity leaves little margin of safety.
• Zero dividend yield means investors depend entirely on price appreciation and hope.
• Debt-to-equity of 0.94, combined with hotel cyclicality, could create cash-flow stress when demand cools.

AI Analysis

Hotels are not my kind of business. They are asset-heavy, cyclical, and require constant capital to keep rooms fresh. Samhi Hotels, at ₹163.55 with a market cap of ₹3,595 Cr, trades at 1.25 times book value of ₹130.79. That looks reasonable until I examine the quality of equity. A 5.69% ROE and 9.43% ROCE are mediocre; a shareholder should expect far more from a business that must carry debt. The debt-to-equity of 0.94 is tolerable in boom times, but in hospitality, a downturn can stretch that leverage painfully. The growth numbers tempt me: sales up 15.63%, profit up 74.40%, and a PEG of 0.51. Latest quarter sales of ₹338 Cr and net profit of ₹48 Cr show momentum. The Piotroski F-Score of 7/9 gives me some confidence that the improved earnings are not merely accounting cosmetics. Still, I must remember hotels are cyclical. A 74% profit jump in a good year is not a permanent compounder; it is an earnings cycle on an upswing. What bothers me most is the reported promoter holding of 0.00% and zero dividend yield. When owners are absent, and the company pays no dividend, the investor is relying entirely on hope and price appreciation. Benjamin Graham taught me to invest with a margin of safety; this has a FairStock Score of 40/100, mixed. At 23.17 times earnings and low ROE, the market has already priced in a benign hotel cycle. The 52-week range of ₹127 to ₹227 reminds me how quickly sentiment swings. I would watch this stock, but I would not buy it at this price until the balance sheet is stronger, promoter skin in the game exists, and capital allocation proves itself.

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