1. At a Glance
TajGVK isn’t just another hotel stock—it’s a JV lovechild between Hyderabad’s GVK Group and Tata’s Indian Hotels Company (IHCL). They run six luxury properties under the TAJ brand, so your cappuccino foam art is backed by two corporate giants. FY25 revenue hit ₹463 Cr with a ₹118 Cr PAT, and operating margins are at a gourmet 31%. Debt? Almost gone. Stock P/E? A very digestible 21.7—cheaper than most five-star peers. The real kicker? 112% 3-year profit CAGR. Basically, this is a hotel chain that’s been compounding like it’s serving repeat guests with a credit card.
2. Introduction
Back in 1995, TajGVK decided it wouldn’t settle for being “just another local hotel chain.” Instead, it shook hands with the Taj brand, plugged into the Tata hospitality playbook, and started serving up luxury across Hyderabad, Chandigarh, and beyond.
While the hospitality sector got nuked in FY21 thanks to COVID, TajGVK staged a comeback with the finesse of a Michelin-star chef—going from a ₹26 Cr loss in FY21 to ₹118 Cr PAT TTM. With debt reduced from ₹232 Cr in 2014 to ₹44 Cr in FY25, they’ve basically taken the “high fixed cost” hotel model and turned it into a lean, cash-spinning operation.
But the real magic is in their margin profile—31% OPM, which is rare for Indian mid-cap hotel players. And with IHCL managing operations, TajGVK gets the branding without having to reinvent the room-service menu.
3. Business Model (WTF Do They Even Do?)
- Assets
- : Six luxury hotels & resorts (owned & operated under TAJ brand).
- Management: IHCL handles day-to-day ops—brand synergy + operational efficiency.
- Revenue Sources: Room tariffs, banquets/events, F&B, long-term corporate contracts.
- USP: Premium positioning with access to IHCL’s loyalty programmes, global marketing, and cost optimisation network.
The model is straightforward: own prime properties, let Taj run them, and keep occupancy + ARRs high. The real capex risk? Every time they renovate, it’s not paint—it’s marble from Italy.
4. Financials Overview
TTM Revenue: ₹463 Cr (↑ 13% YoY)
TTM PAT: ₹118 Cr (↑ 60% YoY)
OPM: 31%
ROCE: 20.8%
ROE: 16.2%
EPS (FY25): ₹18.87
📌 Fresh P/E Calculation
Q1 FY26 EPS = ₹5.78 → Annualised = ₹23.12
CMP ₹409 → P/E = 17.7 (vs TTM 21.7—forward multiple looking even more reasonable).
🗯 “That’s the kind of P/E where the market is saying: ‘We like you, but we’re not giving you Lemon Tree’s 50× fantasy.’”
5. Valuation
1️⃣ P/E Method
Peer median P/E ≈ 42
