Sayaji Hotels Indore – ₹105 Cr Sales, ₹180 Cr Capex, and Promoters Diluting Like Soda in a 5-Star Cocktail

1. At a Glance

Sayaji Hotels (Indore) Ltd was born in 2018, but really came into play after the 2023 demerger from the original Sayaji Hotels Ltd. Fast forward to 2024: listed on BSE, market cap ₹355 Cr, two Indore properties, and a giant ₹180 Cr capex plan for a 240-room convention centre. Stock trades at ₹1,165 — but with promoters cutting stake from ~75% to 41%, it looks like a wedding buffet where the host quietly slips away.

2. Introduction

If you’ve ever attended a wedding in Indore, chances are you’ve eaten too much paneer butter masala at Sayaji. The brand is a household name in Madhya Pradesh. But corporates aren’t run like shaadis — and Sayaji Hotels (Indore) is proving that the hospitality industry can be as dramatic as a family WhatsApp group.

After the NCLT-approved restructuring, SHIL landed on the stock market in Jan 2024. Investors got excited (stock doubled in 6 months), then nervous (promoter holding slipped sharply). Now, with an open offer from Century 21 Officespace at ₹1,250/share, the script is turning filmi: will this be a takeover battle or just a smooth transfer of power?

3. Business Model (WTF Do They Even Do?)

Own and operate Sayaji Hotel Indore (214 rooms) and Sayaji Amber Garden.
Revenue comes from: Rooms (39%), Food & Beverages (52%), and banquets/club rentals (9%).
Capex underway: Amber Hotel & Convention Centre (240 rooms, ₹180 Cr project) — Indore’s shot at becoming a MICE (Meetings, Incentives, Conferences, Exhibitions) hub.
Business strategy: Stick to Indore for now, build depth instead of spreading thin.

So yes, unlike Lemon Tree or Indian Hotels chasing pan-India expansion, SHIL is very Indore-focused. But hey, if OYO can claim to be “world’s biggest,” maybe two hotels are enough for global domination?

4. Financials Overview

Source table

Metric	Q1 FY26	Q1 FY25	Q4 FY25	YoY %	QoQ %
Revenue	₹23.8 Cr	₹24.1 Cr	₹29.5 Cr	-1.3%	-19%
EBITDA	₹5.2 Cr	₹8.3 Cr	₹8.0 Cr	-37%	-35%
PAT	₹1.79 Cr	₹4.54 Cr	₹4.4 Cr	-61%	-60%
EPS	₹5.9	₹14.9	₹14.5	-61%	-60%

Annualised EPS (Q1 × 4) = ~₹23.6. At CMP ₹1,165 → P/E ~49x. Ouch.

Commentary: One bad quarter can flip the math, and hotels are notorious for seasonality. But this fall in profit is more like a hotel guest checking out early without paying.

5. Valuation (Fair Value Range Only)

P/E Method: EPS ~₹35 (FY25), industry P/E ~35–40. FV = ₹1,200–₹1,400.
EV/EBITDA: EV ~₹406 Cr, EBITDA TTM ~₹26 Cr → 15.6x. Peers trade ~18–22x. FV = ₹1,100–₹1,300.
DCF (10% revenue CAGR, 12% discount): FV ~₹1,000–₹1,200.

Consolidated FV Range = ₹1,000 – ₹1,400
(Educational purposes only, not investment advice)

6. What’s Cooking – News, Triggers, Drama

Open Offer Drama: Century 21 is making a mandatory open offer for 26% stake at ₹1,250/share. Translation: promoters are handing the keys over.
Capex Splash: ₹180 Cr convention centre project — ₹125 Cr debt already sanctioned. If it works, Indore becomes a wedding + MICE hotspot. If not, it’s an expensive shaadi hall.
Promoter Holding: Dropped from ~75% to 41% in one year. Investors are wondering if this

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