At a Glance
Advani Hotels & Resorts (AHRIL), the owner of Goa’s Caravela Beach Resort, reported Q1 FY26 revenue of ₹19.9 crore (down 9.7% YoY) and a PAT of ₹2.35 crore (down 34.9% YoY). Operating margin fell sharply to 14.9%, and the stock at ₹60 barely moved, possibly because investors were too busy sipping cocktails elsewhere. The company remains debt-free, with strong ROCE (45%) and dividend yield (3.16%), but this quarter’s numbers scream: “Monsoon season blues.”
Introduction
Advani Hotels is a single-property hospitality play – the Caravela Beach Resort in Goa. This 5-star deluxe property, with its 201 rooms, golf course, and beach frontage, is a tourist magnet in peak season but struggles in off-season. Unlike chain hotels (IHCL, EIH), Advani’s performance is tied to just one asset. When Goa sneezes, the stock catches a cold.
Despite consistent profitability, the stock has fallen 22% in the past year, reflecting slowing growth and rising competition from global hospitality chains and Airbnbs with questionable hygiene but killer prices.
Business Model (WTF Do They Even Do?)
Advani Hotels runs one resort – the Caravela Beach Resort, Goa. Revenue comes from:
- Room bookings (seasonal highs in winter, lows in monsoon)
- Food & beverages (which often have better margins than rooms)
- Events & banquets (weddings, conferences – cash cows in peak season)
The model is asset-heavy, reliant on tourism trends, and sensitive to seasonal and macroeconomic factors. Unlike hotel chains, AHRIL has no diversification in geography or brand portfolio.
Financials Overview
Q1 FY26 Results
- Revenue: ₹19.9 crore (YoY -9.7%)
- EBITDA: ₹2.96 crore (EBITDA Margin 14.9%)
- PAT: ₹2.35 crore (YoY -34.9%)
- EPS: ₹0.25
FY25 Full Year
- Revenue: ₹107 crore
- PAT: ₹26 crore
- OPM: 31%
- PAT Margin: 24%
Commentary: Revenue and profit dropped as Q1 is off-season in Goa. Operational costs remained sticky, leading to margin compression.
Valuation
Let’s apply some math, not magic:
- P/E Method
- EPS (TTM): ₹2.72
- Fair P/E for single-property hotel: 15–18x
- Fair Value: ₹40–₹50
- EV/EBITDA Method
- EV/EBITDA: 10x (industry average)
- EBITDA (TTM): ₹33 crore
- EV ≈ ₹330 crore → per share ≈ ₹50–₹55
- DCF (Quick Check)
- Assume 5% growth, 10% discount
- Fair Value ≈ ₹50–₹60
Final Range: ₹50–₹60 (current price ₹60 = fairly valued, not a bargain).
What’s Cooking – News, Triggers, Drama
- No Expansion Plans: Still just one resort. Investors yawn.
- High Dividend Payout: 84.9% payout ratio – good for income seekers.
- Tourism Trends: If Goa tourism booms, Advani benefits. If not, well…
- Potential M&A? Market speculates that a chain could acquire it someday.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 108 |
| Liabilities | 27 |
| Net Worth | 81 |
| Borrowings | 1 |
Remarks: Solid balance sheet – almost debt-free. Auditor probably clapped.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating | 26 | 29 | 21 |
| Investing | -9 | -13 | 5 |
| Financing | -15 | -17 | -18 |
Remarks: Healthy operating cash, but high dividend payouts keep cash balances low.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 34.5% |
| ROCE | 45.4% |
| P/E | 22.1 |
| PAT Margin | 24% |
| D/E | 0.01 |
Remarks: High ROE/ROCE – excellent capital efficiency. P/E at 22 is not cheap for a single resort.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 99 | 105 | 107 |
| EBITDA | 39 | 34 | 33 |
| PAT | 29 | 25 | 26 |
Remarks: Revenue growth is almost stagnant; profits stable but not exciting.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Indian Hotels | 8,825 | 1,716 | 61.5 |
| EIH | 2,743 | 768 | 30.6 |
| Lemon Tree | 1,286 | 197 | 59.1 |
| Advani Hotels | 105 | 25 | 22.1 |
Remarks: Compared to peers, Advani is cheaper but also a minnow with no growth triggers.
Miscellaneous – Shareholding, Promoters
- Promoters: 50.24% (stable)
- FIIs/DIIs: negligible
- Public: 49.48% (retail heavy)
Promoters have skin in the game, but no signs of aggressive expansion.
EduInvesting Verdict™
Advani Hotels is like a hidden beach in Goa – beautiful but limited in scope. The Caravela Beach Resort delivers consistent profits and dividends, but growth is stagnant. This is a steady dividend play, not a growth rocket.
SWOT Analysis
- Strengths: Debt-free, high ROE, prime asset in Goa, generous dividends.
- Weaknesses: Single property risk, seasonal earnings, no scale.
- Opportunities: Tourism growth, potential acquisition by larger chain.
- Threats: Weather, competition, global travel disruptions.
Final Word: Advani Hotels is a safe but boring bet – perfect for dividend collectors, not for adrenaline junkies chasing multibaggers.
Written by EduInvesting Team | August 02, 2025
SEO Tags: Advani Hotels Q1 FY26 Results, Caravela Beach Resort, Hotel Stocks India, Goa Tourism Play
