TajGVK Hotels (TAJGVK)
CyclicalFairStock Score: 51/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹341.65 |
| Market Cap | ₹2,142.2 Cr |
| P/E Ratio | 5.18 |
| ROCE | 20.29% |
| ROE | 20.77% |
| Dividend Yield | 0.59% |
| Profit Growth | -38.5% |
| Debt/Equity | 0.09 |
| Sales Growth | 55.1% |
| Promoter Holding | 71% |
| 52-Week Range | ₹281.35 — ₹476.85 |
| Sector | Leisure Services |
| Book Value | ₹162.98 |
Strengths
- Strong Taj brand with 71% promoter holding, aligning management with minority shareholders
- High profitability: ROE of 20.77% and ROCE of 20.29%
- Conservative balance sheet: debt/equity only 0.12
- Latest quarter net margin roughly 27% (₹37 Cr profit on ₹136 Cr sales)
Concerns
- Profit growth is -10.17% despite sales growth of 7.42%, indicating margin pressure
- P/B of 3.65 at ₹329.30 against book value of ₹90.30, and P/E of 17.88 for a shrinking earnings base
- Piotroski F-Score of 4/9 raises questions about financial quality
- Wide 52-week range of ₹281.35-₹512.65 highlights cyclical and sentiment volatility
AI Analysis
Let me look at TajGVK as a business, not a ticker. On the surface, this is a quality hotel operator: the Taj brand, promoter holding of 71%, low debt at 0.12 D/E, and a return on equity of 20.77% with ROCE at 20.29%. Those are good numbers; they indicate an established franchise with some pricing power. However, my mentor taught me to watch the scoreboard: profit growth is -10.17% even though sales grew 7.42%. That tells me margins are being squeezed, which is never pleasant in a capital-heavy industry. Hotels are also inherently cyclical — the 52-week range from ₹281.35 to ₹512.65 shows how far sentiment can swing. At ₹329.30, the market caps it at ₹2,240 crore, or 17.88 times trailing earnings. For a business whose profits are shrinking, that is not a bargain. Book value is ₹90.30, so at ₹329.30 the P/B is 3.65; you are paying a handsome premium to net assets. The Piotroski F-score of 4 out of 9 fails my quality screen, and with a PEG of 2.41, growth is not justifying the multiple. The latest quarter did show ₹37 crore net profit on ₹136 crore sales, a strong 27% margin, but one quarter does not make a trend. FairStock's 36/100 says mixed, and I agree. This is a fine company, but a great investment requires the right price plus a margin of safety. Today, with falling earnings and an uncertain hotel cycle, I would keep it on my watchlist rather than commit capital. Value is what you wait for.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer