Suba Hotels (SUBAHOTELS)

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

Key Financials

Strengths

• Revenue jumped 48.84% and profit grew 57.83%, showing strong momentum.
• PEG of 0.35 with P/E of 18.48 suggests growth is not fully priced.
• ROCE of 24.15% indicates efficient use of capital.
• Piotroski F-Score of 7/9 reflects decent financial health.
• Promoters hold 60.93%, aligning their interests with public shareholders.

Concerns

• No dividend; investors depend entirely on capital appreciation and reinvestment.
• Key financial details missing – ROE, book value, debt/equity – limit full analysis.
• Hospitality is cyclical; 52-week range of ₹95.05–₹155.00 shows volatility.
• Latest quarter net margin of roughly 11% (₹5 Cr on ₹44 Cr) is thin and needs to expand.

AI Analysis

Hotels are a wonderful business only when they are run with discipline, and at first glance Suba Hotels shows several pleasing traits. The company has grown sales by 48.84% and profits by 57.83%, which tells me demand is strong and operating leverage is working. A P/E of 18.48, combined with that profit growth, gives a PEG of 0.35 - a price that would make Graham nod if the growth is durable. ROCE of 24.15% is impressive; it suggests management is putting capital to work efficiently, though I wish they had disclosed ROE and book value. The Piotroski F-score of 7 out of 9 supports the idea that this is not a struggling balance sheet, but I cannot fully judge financial risk without debt-to-equity data. Promoters own 60.93%, so their interests are tied to mine; that is important in a small-cap hospitality name. Yet I must keep my temperament in check. This is a cyclical industry, not a consumer staple. The 52-week range of ₹95.05 to ₹155.00 shows how quickly sentiment can swing. The latest quarter's sales of ₹44 Cr and net profit of ₹5 Cr imply a net margin of roughly 11%, reasonable but not cushy. There is no dividend, so my return depends entirely on future growth and eventual capital allocation. I would not label this a safe stalwart. It looks like a fast grower, but only if the travel cycle and expansions remain favourable. At ₹127.35 and a market cap of ₹316 Cr, the market is paying a fair, not crazy, price for a small hotel company in the middle of a growth spurt. I need to watch leverage, disclosure quality, and quarterly momentum before committing real money.

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