Espire Hospitality Ltd () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Robust Hotels

Advani Hotels.

Sinclairs Hotels

Apollo Sindoori

Espire Hospi

Praveg

Sayaji Hotels

Kamat Hotels

HLV

Emerald Leisures

Suba Hotels

Why is Espire Hospitality Ltd ?

Poor Management Efficiency with a low ROCE of 4.26%

The company has been able to generate a Return on Capital Employed (avg) of 4.26% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at 8.60 times

High Debt Company with a Debt to Equity ratio (avg) at 8.60 times
The company has been able to generate a Return on Capital Employed (avg) of 4.26% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 8.9, it has a Expensive valuation with a 3.5 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.20%, its profits have risen by 84.6% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 11.51% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.20% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Espire Hospi for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Espire Hospi

-21.2%

-0.46

46.52%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

165.98%

EBIT Growth (5y)

85.20%

EBIT to Interest (avg)

1.26

Debt to EBITDA (avg)

4.25

Net Debt to Equity (avg)

3.18

Sales to Capital Employed (avg)

0.55

Tax Ratio

35.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.08%

ROCE (avg)

-8.06%

ROE (avg)

27.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.46

EV to EBIT

27.67

EV to EBITDA

20.37

EV to Capital Employed

3.51

EV to Sales

4.34

PEG Ratio

0.80

Dividend Yield

ROCE (Latest)

8.86%

ROE (Latest)

21.44%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 7.75 times

NET SALES(Q)

At Rs 40.97 cr has Grown at 23.7% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 14.64 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 35.73%

PBT LESS OI(Q)

Highest at Rs 10.65 cr.

PAT(Q)

Highest at Rs 8.19 cr.

EPS(Q)

Highest at Rs 5.49

-4What is not working for the Company

PAT(Latest six months)

At Rs 2.48 cr has Grown at -33.87%

INTEREST(Q)

At Rs 1.89 cr has Grown at 52.42%

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Here's what is working for Espire Hospi

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 10.65 cr has Grown at 748.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1.26 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 8.19 cr has Grown at 992.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 0.75 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 7.75 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

At Rs 40.97 cr has Grown at 23.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 33.11 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 14.64 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 35.73%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 10.65 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 8.19 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.49

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Espire Hospi

Interest - Quarterly

At Rs 1.89 cr has Grown at 52.42%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)