HLV Limited (HLVLTD) AI Stock Analysis

• Market Cap: ₹4.60B
• Dividend Yield: N/A
• Average Volume (3M): 40.23K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.19
• Revenue Growth: -3.91%
• EPS Growth: -69.51%
• Country: IN
• Employees: 447
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.10
• Shares Outstanding: 659,259,900
• 10 Day Avg. Volume: 35,910
• 30 Day Avg. Volume: 40,226
• PEG Ratio: 2.85
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 4.06
• P/FCF Ratio: 36.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹7.50 ▼(-21.47% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is supported primarily by strong financial performance (revenue growth, solid margins, low leverage, and good cash conversion). This is materially offset by weak technicals, with the price below all key moving averages and bearish momentum indicators. Valuation is neutral-to-moderate based on the provided P/E, with no dividend data available to improve the assessment.

Positive Factors

High gross and net margins

Sustainably high gross (65.95%) and net (11.96%) margins indicate structural pricing power and effective cost control in HLV's operations. These margins provide durable earnings resilience through demand cycles, supporting reinvestment, debt service and long-term profitability stability for 2-6+ months.

Low leverage and strong equity base

Very low leverage (D/E 0.09) and a 74% equity ratio give HLV material financial flexibility. This capital structure reduces interest burden risk, supports capital spending or acquisitions without heavy refinancing, and enhances resilience to cyclical downturns over medium-term horizons.

Solid cash conversion from operations

Operating cash generation exceeds reported earnings (OCF/NI 1.29) and FCF converts a high share of income (0.87). Reliable cash conversion sustains internal funding for maintenance capex, working capital and debt reduction, lowering external financing needs and improving long-run strategic optionality.

Negative Factors

Negative free cash flow growth

Despite strong cash conversion ratios, a negative free cash flow growth trend suggests declining absolute FCF versus prior periods. This can limit capacity to expand, return capital or buffer shocks, and may reflect higher capex, working capital pressures, or one-off outflows that constrain medium-term investment plans.

Modest return on equity

An ROE of ~5.6% indicates relatively modest efficiency in converting equity into profit. For a capital-intensive hospitality business, this suggests limited incremental returns on invested capital, which can restrain shareholder value creation and signal room to improve asset utilization or pricing over the coming quarters.

Sharp negative EPS growth

An approximately -84% EPS decline points to earnings volatility or significant one-off impacts in the latest period. Such swings undermine predictability of profits and cash available for strategic uses, making near-term earnings recovery and consistency a material risk to long-term returns and planning.

HLV Limited Business Overview & Revenue Model

Company Description

HLV Limited owns and operates hotel in Mumbai. It operates The Leela hotel with 394 guest rooms. The company was formerly known as Hotel Leelaventure Limited and changed its name to HLV Limited in December 2019. HLV Limited was incorporated in 1981 and is based in Mumbai, India.

How the Company Makes Money

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HLV Limited Financial Statement Overview

Summary

Strong fundamentals overall: revenue grew 9.71% with healthy gross margin (65.95%) and solid profitability (net margin 11.96%). Balance sheet leverage is low (debt-to-equity 0.09; equity ratio 74.06%), and cash generation is solid (operating cash flow to net income 1.29; FCF to net income 0.87). Key drawbacks are modest ROE (5.58%) and negative free cash flow growth.

Income Statement

HLV Limited has demonstrated strong revenue growth with a significant increase in Total Revenue from ₹1.99 billion to ₹2.18 billion, marking a growth rate of 9.71%. The Gross Profit Margin stands at 65.95%, indicating efficient cost management. Additionally, the net profit margin is 11.96%, reflecting solid profitability. The company has improved its EBIT and EBITDA Margins to 11.59% and 19.77% respectively, showing enhanced operational efficiency.

Balance Sheet

The balance sheet of HLV Limited is robust, with a Debt-to-Equity Ratio of 0.09, indicating low leverage and a strong equity base. Return on Equity is at 5.58%, which is reasonable given the industry context. The Equity Ratio is 74.06%, demonstrating financial stability and a high proportion of equity financing. However, the relatively low ROE suggests room for improvement in generating returns from equity.

Cash Flow

HLV Limited shows strong cash flow management, with a Free Cash Flow to Net Income Ratio of 0.87, indicating substantial conversion of earnings to cash. The Operating Cash Flow to Net Income Ratio is 1.29, suggesting effective cash generation from operations. However, the Free Cash Flow Growth Rate is negative, reflecting a decrease from the previous period, which could be a potential area of concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.01B	2.03B	1.99B	1.73B	729.97M	189.21M
Gross Profit	1.27B	1.44B	1.25B	1.00B	349.40M	-52.54M
EBITDA	398.24M	431.84M	395.27M	238.17M	-276.39M	-211.10M
Net Income	210.30M	261.30M	238.03M	76.47M	-425.10M	-359.26M
Balance Sheet
Total Assets	0.00	6.32B	5.80B	5.66B	5.60B	5.96B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.38B	1.14B	492.93M	668.77M	33.16M
Total Debt	0.00	410.60M	343.80M	327.99M	476.37M	580.17M
Total Liabilities	-4.68B	1.64B	1.36B	1.47B	1.48B	1.75B
Stockholders Equity	4.68B	4.68B	4.43B	4.19B	4.12B	4.22B
Cash Flow
Free Cash Flow	0.00	227.33M	238.23M	353.98M	-486.20M	-291.45M
Operating Cash Flow	0.00	337.20M	238.23M	353.98M	-486.20M	-291.45M
Investing Cash Flow	0.00	221.55M	-326.44M	164.07M	223.11M	107.51M
Financing Cash Flow	0.00	11.81M	-24.86M	-411.40M	261.69M	35.31M

HLV Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HLVLTD, the sentiment is Negative. The current price of 9.55 is above the 20-day moving average (MA) of 8.10, above the 50-day MA of 8.53, and below the 200-day MA of 10.99, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 32.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HLVLTD.

HLV Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHLTD	74 Outperform	₹9.58B	21.57	―	―	-11.23%	-65.46%
ADVANIHOTR	72 Outperform	₹4.70B	12.58	―	3.31%	0.14%	7.90%
HLVLTD	66 Neutral	₹4.60B	21.81	―	―	-3.91%	-69.51%
ASIANHOTNR	66 Neutral	₹5.72B	-2.80	―	―	8.18%	―
KAMATHOTEL	61 Neutral	₹5.39B	10.10	―	―	9.52%	-39.66%
ROHLTD	61 Neutral	₹8.83B	31.71	―	0.61%	10.77%	-4.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%