🧾 At a glance

In FY25, Viceroy Hotels Ltd posted its best-ever profit of ₹78 crore after a decade of chaos, losses, forensic audits, land litigations, and a corporate soap opera. From negative reserves to a Marriott revival plan, this ₹100 stock has staged a dramatic comeback — or has it? Here’s a full 5-year deep dive to separate real luxury from rehab illusion.

🏨 About the Company

• Viceroy Hotels Ltd owns and operates a premium property in Hyderabad.
• It operates under the Marriott brand through a management agreement.
• Property includes:
  • 407 rooms
  • 6 F&B outlets
  • 10,000 sq. ft. convention centre
• Also signed a fresh Marriott development deal for a new 200-room hotel in FY25.

💼 Key Managerial People (KMP)

• CEO: Not publicly disclosed in detail, but promoter shareholding jumped from 13% to 84% by FY25, indicating major realignment.
• Board has undergone changes post forensic audit (details awaited in full annual report).
• Secretarial compliance in FY25 flagged minor lapses, but no major violations.

📊 5-Year Financial Performance (FY21–FY25)

📌 Turnaround Alert: From a ₹443 crore loss in FY18 to a ₹78 crore profit in FY25 — even Bollywood wouldn’t write this script.

🧮 Forward-Looking Fair Value (FV) Estimate

Assumptions:

• Revenue CAGR: 12% over next 3 years
• Sustainable EBITDA Margin: 25%
• EV/EBITDA Industry Avg: 18x
• Net debt remains low (₹52 Cr in FY25)

Estimated FV Range (2026–27): ₹120–₹150 per share
(CMP ₹100; upside potential 20–50% depending on execution of Marriott expansion)

📈 Why It Stands Out

• ROE in FY25: 49.7% — Yes, you read that right.
• From zero dividends to zero borrowings soon?
• Promoter stake shot up from 13% to 84% in just 12 months — rare in a hotel stock.
• Net worth turned positive after 10+ years.
• Working Capital Days surged from negative 91 to +98 — a red flag we’ll address below.

🔍 Balance Sheet Review

🛎️ Balance Sheet verdict:

• Deleveraging was real — debt dropped from ₹634 Cr to ₹52 Cr.
• But reserves jumped ₹173 Cr in a year — we need to wait for the final AR to explain this surge (revaluation? asset sale? writebacks?).

🛎️ Growth Outlook

• Marriott tie-up for new 200-room property indicates confidence.
• FY25 announcement: Land litigation resolved, paving way for new capex cycle.
• RevPAR recovery visible — average occupancy & F&B revenues expected to normalize in FY26.
• FY26–27 might finally see dividends if profit trend sustains.

🧠 EduInvesting Take

🎭 This company went from:

“Negative reserves and forensic audit”
TO
“Double-digit ROE and Marriott expansion”

And no, this is not a crypto pump — it’s a legit hospitality turnaround. But here’s the real kicker: despite FY25’s dramatic profit spike, working capital days surged, and interest cost was capitalized in a few quarters (a red flag for financial illusionists).

In a ₹100 stock where promoters suddenly gobble up 84%, you either get:

• A multibagger with room service
• Or a room with no windows and a broken minibar

Verdict:
We’d love to believe in Viceroy’s 5-star comeback. But don’t check-in without reading the fine print in the minibar bill.

⚠️ Risks & Red Flags

• 👮‍♂️ Forensic Audit Ongoing — clean chit pending
• 💰 Interest cost capitalization detected
• 📉 Working capital days flipped from negative to positive — signal of potential receivable ballooning
• 📊 Low promoter holding in past raises legacy concerns (mitigated now post 84% stake)
• 🚫 No dividend history despite profitability
• 🧮 Net profit includes potential one-offs — deeper audit needed

🏁 TL;DR

Tags: Viceroy Hotels 5 year analysis, Marriott India, Hotel stock turnaround, VHLTD share price future, Viceroy FY25 result, hotel stocks in India, multibagger stocks 2025, low PE hotel stock

Author: Prashant Marathe
Date: 12 June 2025