Sayaji Hotels Faces Financial Challenges Amid Declining Profit and Increased Leverage

Sayaji Hotels, a microcap player in the Hotels & Resorts industry, has recently undergone an adjustment in evaluation, reflecting notable shifts in its financial metrics. The company's financial performance for the quarter ending September 2025 has been characterized as very negative, with a significant decline in its score. The latest data indicates a drop in profit after tax to Rs -9.85 crore, marking a substantial change compared to previous periods.
Key financial indicators reveal that the operating cash flow has reached its lowest point at Rs 28.20 crore, while the return on capital employed (ROCE) stands at a low of 0.37%. Additionally, the debt-equity ratio has risen to 1.12 times, suggesting an increase in leverage. The company's interest expenses have grown significantly, yet the operating profit to interest ratio remains low at 1.37 times.

In terms of quality metrics, Sayaji Hotels has transitioned from a below-average to an average quality grade, with sales growth over five years recorded at 0.36%. Despite these adjustments, the company has faced challenges in maintaining investor confidence, as evidenced by a decrease in promoter stake.

Overall, the recent evaluation adjustment highlights the ongoing financial dynamics within Sayaji Hotels, reflecting both the challenges and the evolving landscape of the company.

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