Robust Hotels Ltd. (RHL) AI Stock Analysis

• Market Cap: ₹3.05B
• Dividend Yield: N/A
• Average Volume (3M): 702.00
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.65
• Revenue Growth: 6.45%
• EPS Growth: 176.12%
• Country: IN
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 3.38
• Shares Outstanding: 17,291,697
• 10 Day Avg. Volume: 246
• 30 Day Avg. Volume: 702
• PEG Ratio: 0.10
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 2.88
• P/FCF Ratio: 7.97
• 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: 71 Outperform
• Price Target: ₹195.00 ▼(-9.99% Downside)

The score is primarily driven by strong financial performance (improving profitability, robust margins, and strong free cash flow generation) and a stable balance sheet with conservative leverage. This is tempered by mixed technicals, as the stock is below longer-term moving averages with a negative MACD, while valuation looks reasonable based on its P/E.

Positive Factors

Profitability Trend

Sustained revenue expansion with materially higher gross and net margins indicates improved pricing power and cost control. These margin gains support durable operating profitability, provide buffer in downturns, and underpin reinvestment and long-term cash generation.

Cash Generation

Very strong FCF growth and high cash conversion demonstrate the business converts earnings into cash reliably. That durability enables capex funding, debt flexibility and potential shareholder returns, improving resilience across business cycles.

Conservative Balance Sheet

A well-capitalized balance sheet with low leverage reduces financial risk and preserves strategic optionality. This structural strength supports investment, M&A or cyclical cushioning without pressuring liquidity or forcing distressed asset sales.

Negative Factors

Low Return on Equity

ROE near 2% signals limited capital efficiency despite improved margins and cash flow. Persistently low ROE can restrict long-term shareholder returns and suggests either overcapitalization or underutilized assets, requiring better capital allocation to lift returns.

Moderating Revenue Growth

A lower multi-period revenue growth metric versus the recent single-year jump suggests growth may be normalizing. If top-line momentum slows, sustaining margin and FCF improvements becomes harder, limiting reinvestment potential and long-term expansion.

Industry Cyclicality

Exposure to travel and lodging creates structural sensitivity to economic cycles, travel demand shifts and external shocks. Even with strong fundamentals, cash flow and occupancy can be volatile across cycles, requiring larger buffers and conservative planning.

Robust Hotels Ltd. Business Overview & Revenue Model

Company Description

Robust Hotels Limited engages in hotels business in India. It operates Hyatt Regency Chennai, a five-star hotel located in the city of Chennai. The company was formerly known as Robust Hotels Private Limited and changed its name to Robust Hotels Limited in October 2022. Robust Hotels Limited was incorporated in 2007 and is based in Chennai, India.

How the Company Makes Money

Robust Hotels Ltd. generates revenue through multiple streams, primarily from room bookings, which constitute the largest portion of its income. Additional revenue comes from food and beverage sales at on-site restaurants and bars, event hosting and conference services, and ancillary services such as spa treatments and recreational activities. The company also engages in strategic partnerships with travel agencies and online booking platforms, enhancing its visibility and reach to potential guests. Moreover, RHL benefits from loyalty programs that encourage repeat business, thus contributing to stable income. Seasonal promotions and targeted marketing campaigns further boost occupancy rates, ensuring consistent revenue flow.

Robust Hotels Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by solid revenue growth (+11.3% YoY), a high gross margin (69.2%), and a meaningful improvement in net margin (to 12.1%). Cash generation is strong with sharply higher free cash flow (+150.1%) and strong cash conversion (operating cash flow to net income 3.3). Balance sheet risk appears contained with a high equity ratio (79.2%) and low debt-to-equity (0.22).

Income Statement

Robust Hotels Ltd. has demonstrated strong revenue growth with a significant increase of 11.3% from 2024 to 2025. The gross profit margin is robust at 69.2%, indicating efficient cost management. The net profit margin improved significantly to 12.1%, up from 3.9% the previous year, showcasing enhanced profitability. The EBIT and EBITDA margins have also strengthened, highlighting operational efficiency.

Balance Sheet

The company has a solid equity position, with an equity ratio of 79.2%, indicating strong financial stability. The debt-to-equity ratio is manageable at 0.22, suggesting conservative leverage. Return on Equity (ROE) has improved to 2.3%, reflecting better return on shareholder investments. The balance sheet is well-capitalized, reducing financial risk.

Cash Flow

Robust Hotels Ltd. has significantly increased its free cash flow by 150.1% from 2024 to 2025, indicating strong cash generation capability. The operating cash flow to net income ratio of 3.3 shows effective cash conversion from earnings. The free cash flow to net income ratio is also strong at 3.0, highlighting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.40B	1.36B	1.22B	1.06B	405.06M	249.56M
Gross Profit	973.54M	943.43M	884.71M	756.53M	151.52M	136.28M
EBITDA	608.78M	558.80M	378.62M	309.51M	-16.30M	-12.07M
Net Income	191.26M	164.59M	47.37M	553.20M	-350.02M	-335.55M
Balance Sheet
Total Assets	0.00	9.06B	8.92B	8.43B	5.27B	5.35B
Cash, Cash Equivalents and Short-Term Investments	246.15M	398.97M	86.26M	759.73M	8.12M	6.01M
Total Debt	0.00	1.54B	1.59B	1.14B	1.91B	1.47B
Total Liabilities	-7.17B	1.88B	1.91B	1.47B	2.22B	1.96B
Stockholders Equity	7.17B	7.17B	7.01B	6.96B	3.05B	3.40B
Cash Flow
Free Cash Flow	0.00	492.05M	196.65M	225.51M	-62.38M	-2.22M
Operating Cash Flow	0.00	543.55M	289.35M	272.66M	21.57M	7.48M
Investing Cash Flow	0.00	-267.11M	-786.51M	202.88M	-86.28M	-1.46M
Financing Cash Flow	0.00	-209.85M	330.16M	-268.89M	66.80M	-4.69M

Robust Hotels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.65
• 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:RHL, the sentiment is Negative. The current price of 216.65 is above the 20-day moving average (MA) of 195.31, above the 50-day MA of 199.41, and below the 200-day MA of 240.11, indicating a bearish trend. The MACD of -8.38 indicates Positive momentum. The RSI at 38.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RHL.

Robust Hotels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHLTD	74 Outperform	₹9.17B	48.01	―	―	-11.23%	-65.46%
ADVANIHOTR	72 Outperform	₹5.24B	22.20	―	3.31%	0.14%	7.90%
RHL	71 Outperform	₹3.05B	13.46	―	―	6.45%	176.12%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TGBHOTELS	55 Neutral	₹273.53M	13.77	―	―	11.19%	―
BLUECOAST	39 Underperform	₹462.99M	-7.88	―	1.37%	―	-105.55%