Stock Performance and Market Context
On the day the new low was recorded, Robust Hotels Ltd’s share price fell by 2.7%, touching an intraday low of Rs.180.35. This decline contributed to a four-day losing streak, during which the stock has shed 7.98% of its value. The stock’s performance notably lagged behind the Hotels & Resorts sector, underperforming by 2.77% on the same day.
Trading activity has been somewhat erratic, with the stock not trading on one day out of the last 20 sessions. Furthermore, Robust Hotels is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.
In comparison, the Sensex index experienced a modest decline of 0.35% on the same day, closing at 84,745.67 points, just 1.67% shy of its 52-week high of 86,159.02. The Sensex remains supported by bullish moving averages, trading above its 50-day and 200-day moving averages, highlighting a divergence in performance between Robust Hotels and the broader market.
Long-Term and Recent Returns
Over the past year, Robust Hotels Ltd has delivered a negative return of 30.63%, a stark contrast to the Sensex’s positive 7.67% gain over the same period. The stock’s 52-week high was Rs.339, underscoring the magnitude of the decline to the current low of Rs.180.35. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
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Financial Metrics and Profitability Concerns
Robust Hotels Ltd’s financial indicators reveal challenges in generating returns relative to its capital base. The company’s average Return on Capital Employed (ROCE) stands at a modest 2.12%, indicating limited profitability per unit of total capital employed, which includes both equity and debt. This figure is a key factor in the stock’s current Sell rating, as assigned by MarketsMOJO, which downgraded the stock from Hold to Sell on 24 Dec 2025.
Additionally, the company’s ability to service its debt is constrained, with an average EBIT to Interest ratio of 0.72. This ratio suggests that earnings before interest and tax are insufficiently covering interest expenses, raising concerns about financial leverage and sustainability.
The Return on Equity (ROE) averages 4.28%, reflecting low profitability relative to shareholders’ funds. These metrics collectively contribute to the stock’s Mojo Score of 46.0 and a Market Cap Grade of 4, underscoring the cautious stance on the company’s valuation and financial health.
Operational Performance and Growth Indicators
Despite the subdued returns and valuation pressures, Robust Hotels Ltd has demonstrated notable growth in certain operational areas. The company’s operating profit has expanded at an annual rate of 74.53%, signalling robust top-line efficiency improvements. Furthermore, the company has reported positive results for five consecutive quarters, with the latest six-month Profit After Tax (PAT) reaching Rs.9.87 crores, representing a growth rate of 170.41%.
Profit Before Tax excluding Other Income (PBT less OI) for the latest quarter stood at Rs.3.58 crores, growing by 134.0% compared to the previous four-quarter average. The operating profit to net sales ratio for the quarter is at a high of 33.43%, indicating improved operational margins.
Valuation metrics also suggest some attractiveness, with a ROCE of 3 and an Enterprise Value to Capital Employed ratio of 0.5, positioning the stock at a discount relative to its peers’ historical averages. The company’s Price/Earnings to Growth (PEG) ratio is notably low at 0.1, reflecting the disparity between profit growth and stock price performance.
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Shareholding and Market Position
The majority shareholding of Robust Hotels Ltd remains with its promoters, maintaining a stable ownership structure. The company operates within the Hotels & Resorts industry and sector, which has experienced varied performance amid broader market fluctuations.
While the stock’s recent price action reflects a challenging environment, the company’s operational improvements and profit growth highlight a complex picture of financial and market dynamics.
Summary of Key Data Points
To summarise, Robust Hotels Ltd’s stock has reached a 52-week low of Rs.180.35, down from a high of Rs.339 within the last year. The stock’s one-year return is -30.63%, contrasting with the Sensex’s positive 7.67% gain. Financial ratios such as ROCE (2.12%), ROE (4.28%), and EBIT to Interest (0.72) indicate subdued profitability and debt servicing capacity. However, operational metrics including a 74.53% annual growth in operating profit and a 170.41% increase in PAT over six months demonstrate areas of strength.
Trading below all major moving averages and experiencing a four-day consecutive decline, the stock’s current market behaviour reflects investor caution amid these mixed signals.
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