1. At a Glance – A Boutique Hotel Stock Priced Like A Five-Star Dream
Sayaji Hotels (Indore) Ltd is that rare Indian hotel stock which is small in size, loud in margins, and permanently overconfident on valuation. With a market cap of barely ₹250–255 Cr, the stock has seen a wild ride from ₹1,400+ highs to sub-₹700 lows and is now chilling around ₹829, pretending nothing happened.
Q3 FY26 numbers were actually solid: ₹32.1 Cr revenue, ₹10.96 Cr operating profit, and ₹5.87 Cr PAT. OPM came in at a spicy 34%, ROCE is ~19%, ROE ~18.5%. On paper, this looks like a hotel that thinks it’s Taj Mahal but lives in Indore.
And yet, despite all this, the stock has corrected hard over the last few months. Why? Because this isn’t just a hotel business. It’s a promoter drama, demerger child, capex-heavy, leverage-adding, governance-question-generating soap opera.
So let’s check in, order room service, and read the fine print.
2. Introduction – When A Demerger Creates A Stock With Confidence Issues
Sayaji Hotels (Indore) Ltd didn’t grow organically into a listed company. It was born via a corporate surgery.
In August 2023, Sayaji Hotels Limited (the parent) went under the NCLT knife and split itself into multiple babies:
- Sayaji Hotels (Indore) Ltd
- Sayaji Hotels (Pune) Ltd
- Other holding and management entities
By January 2024, SHIL was listed on BSE, holding just two Indore properties under the Sayaji brand. No pan-India footprint, no asset-light story, no franchise expansion fantasy. Just Indore. Full stop.
But markets love hotels post-COVID. And promoters love capital markets even more.
The result? A stock that was priced like a national hospitality chain while still learning how to walk independently.
So the real question becomes:
Is this a high-quality regional monopoly… or just a well-decorated balance sheet with one city risk?
3. Business Model – WTF Do They Even Do? (Hotels, But Only In Indore)
Sayaji Hotels (Indore) Ltd does exactly one thing:
Own, operate, and manage two hotels
in Indore.
That’s it. No Goa beach, no Mumbai corporate hub, no airport hotels across cities.
Properties:
- Sayaji Hotel Indore – 214 rooms
- Sayaji Amber Garden Indore – banquet & hospitality focused
Revenue mix FY24:
- Rooms: ~39%
- Food & Beverages: ~52%
- Banquets, club, rentals, etc.: ~9%
So this is more of a wedding-and-buffet business than a tourist hotel. If Indore sneezes during wedding season, SHIL catches a cold.
The upside?
- Strong local brand
- High banquet utilisation
- Less dependence on volatile tourist demand
The downside?
- Zero geographic diversification
- Single-city economic exposure
- Expansion = debt, not asset-light growth
Which brings us neatly to…
4. Financials Overview – Strong Quarter, But Let’s Lock The EPS Rules
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 32.13 | 30.17 | 21.06 | 6.5% | 52.6% |
| EBITDA | 10.96 | 8.34 | 3.19 | 31.4% | 243% |
| PAT | 5.87 | 4.54 | 0.18 | 29.3% | 🔥 insane |
| EPS (₹) | 19.27 | 14.90 | 0.59 | 29.3% | LOL |
Yes, QoQ growth looks ridiculous because Sep’25 was a soft quarter. Don’t annualise excitement blindly.
Still, this quarter shows:
- Pricing power in banquets
- Strong cost control
- Operating leverage kicking in
But remember: Hotels are seasonal, cyclical, and ego-driven businesses.
5. Valuation Discussion – When A Small Hotel Asks For Big Hotel Multiples
Let’s do this properly.
Method 1: P/E
- TTM EPS: ~₹40.3
- CMP: ₹829
- P/E ≈ 20.6x
That’s actually cheaper than most listed hotel peers, where P/E often ranges 30–60x.
Method 2: EV / EBITDA
- EV: ~₹326 Cr
