TAJGVK Hotels & Resorts Ltd. (TAJGVK) AI Stock Analysis

• Market Cap: ₹23.13B
• Dividend Yield: 0.48%
• Average Volume (3M): 64.57K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.76
• Revenue Growth: 9.49%
• EPS Growth: 40.16%
• Country: IN
• Employees: 377
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 4.39
• Shares Outstanding: 62,701,496
• 10 Day Avg. Volume: 12,786
• 30 Day Avg. Volume: 64,574
• PEG Ratio: 0.95
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 6.26
• P/FCF Ratio: 38.26
• 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: 72 Outperform
• Price Target: ₹409.00 ▼(-3.61% Downside)

TAJGVK Hotels & Resorts Ltd. has a strong financial foundation with robust revenue growth and profitability, which is the most significant factor in its overall score. However, mixed technical indicators and a moderate valuation suggest some caution. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Profitability & Margins

Sustained high gross and net margins signal durable operational efficiency and pricing power in full‑service hospitality. Strong margins support reinvestment in properties, F&B and events, enabling competitive differentiation and cushioning earnings through demand slowdowns.

Low Financial Leverage

Very low leverage and a strong equity base provide financial flexibility for capex, renovations, or opportunistic expansion without stressing liquidity. Healthy ROE indicates efficient capital use, reducing bankruptcy risk and supporting long‑term strategic investments.

Cash Conversion

Near‑1:1 conversion of net income into operating cash shows robust cash generation from core hotel operations. Reliable cash flow underpins working capital, debt servicing and maintenance capex needs, improving resilience through seasonal and cyclical demand swings.

Negative Factors

Declining Free Cash Flow

An 11% FCF decline reduces available internal financing for renovations, expansions or dividends. In a capital‑intensive hospitality model, falling FCF can pressure liquidity and force higher external funding or defer maintenance, weakening long‑term asset competitiveness.

Revenue Growth Volatility

Material year‑over‑year swings in revenue growth point to sensitivity to demand cycles and pricing variability. This volatility complicates long‑range planning for staffing, capital projects and margin preservation, raising execution risk across multi‑year strategies.

Cyclicality / Earnings Sensitivity

High beta and travel‑lodging exposure indicate earnings are highly cyclical and tied to macro and travel demand. Economic downturns or weaker corporate/leisure travel materially depress occupancy and F&B, challenging margin sustainability and long‑term revenue visibility.

TAJGVK Hotels & Resorts Ltd. Business Overview & Revenue Model

Company Description

TAJGVK Hotels & Resorts Limited owns, operates, and manages hotels, palaces, and resorts under the TAJ brand in India. It operates Taj Krishna, a 5-star hotel with 260 rooms, Taj Banjara with 122 rooms, Taj Deccan with 151 rooms, and Vivanta by Taj, a five star hotel with 181 rooms in Hyderabad. The company also operates Taj Chandigarh with 149 rooms in Chandigarh; Taj Club House with 220 rooms in Chennai; and Taj Santacruz with 279 rooms in Mumbai. The company was incorporated in 1995 and is based in Hyderabad, India.

How the Company Makes Money

TAJGVK generates revenue primarily through the operation of its hotels and resorts, which includes room bookings, food and beverage services, and event hosting. The company capitalizes on its premium brand reputation to attract both domestic and international travelers, thus driving occupancy rates and average daily rates (ADR). Additional revenue streams include partnerships with travel agencies, corporate clients for business travel, and special event bookings such as weddings and conferences. The strategic collaboration with the Taj Group enhances brand visibility and operational expertise, contributing significantly to TAJGVK's profitability.

TAJGVK Hotels & Resorts Ltd. Financial Statement Overview

Summary

TAJGVK Hotels & Resorts Ltd. demonstrates strong financial performance with impressive growth in revenue and profitability. The balance sheet showcases low leverage and effective equity utilization, while cash flows highlight operational efficiency despite a recent decline in free cash flow. This combination of growth, stability, and prudent financial management positions the company well in the travel lodging industry, although attention to cash flow trends will be crucial for future stability.

Income Statement

TAJGVK Hotels & Resorts Ltd. has shown robust revenue growth with a 13.07% increase from 2024 to 2025. The company also achieved a high gross profit margin of 64.78% in 2025, indicating strong operational efficiency. Net profit margin improved to 25.41%, signaling enhanced profitability. EBIT and EBITDA margins stood at 64.78% and 32.47%, respectively, reflecting effective cost management and profitability. However, the previous year's revenue growth rate of 6.34% suggests some fluctuation in revenue increase.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.07 in 2025, indicating low financial leverage. Return on equity (ROE) improved to 17.89%, showcasing efficient use of shareholders' funds. The equity ratio of 74.45% signals a stable financial foundation. However, the decrease in total debt over the years suggests prudent financial management, yet the lower equity ratio of 57.97% in 2021 suggests past balance sheet vulnerabilities.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from 2024 to 2025, with a free cash flow growth rate of -11.11%. The operating cash flow to net income ratio of 0.99 in 2025 highlights the company’s ability to generate cash from its operations effectively. Additionally, the free cash flow to net income ratio of 0.64 indicates balanced cash flow management. However, the decline in free cash flow poses a potential risk to liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.63B	4.61B	4.08B	3.84B	2.27B	930.62M
Gross Profit	3.05B	2.99B	2.80B	2.48B	1.48B	526.14M
EBITDA	1.76B	1.50B	1.31B	1.48B	528.60M	4.69M
Net Income	1.41B	1.17B	744.06M	798.22M	99.05M	-399.67M
Balance Sheet
Total Assets	0.00	8.80B	8.18B	7.58B	7.05B	7.05B
Cash, Cash Equivalents and Short-Term Investments	702.30M	702.30M	730.92M	380.47M	337.88M	107.26M
Total Debt	0.00	440.00M	1.08B	1.41B	2.14B	2.25B
Total Liabilities	-6.55B	2.25B	2.70B	2.96B	3.37B	3.38B
Stockholders Equity	6.55B	6.55B	5.48B	4.61B	3.68B	3.67B
Cash Flow
Free Cash Flow	0.00	754.50M	848.83M	818.80M	530.92M	43.83M
Operating Cash Flow	0.00	1.16B	1.24B	998.60M	530.92M	53.21M
Investing Cash Flow	0.00	-188.20M	-368.26M	-165.80M	5.45M	-4.78M
Financing Cash Flow	0.00	-842.90M	-519.23M	-790.90M	-305.46M	-17.00M

TAJGVK Hotels & Resorts Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 424.30
• 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:TAJGVK, the sentiment is Negative. The current price of 424.3 is above the 20-day moving average (MA) of 391.71, above the 50-day MA of 396.24, and above the 200-day MA of 413.33, indicating a bearish trend. The MACD of -12.29 indicates Positive momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 35.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TAJGVK.

TAJGVK Hotels & Resorts Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAJGVK	72 Outperform	₹23.13B	15.99	―	0.48%	9.49%	40.16%
ADVANIHOTR	72 Outperform	₹5.24B	22.20	―	3.31%	0.14%	7.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ROHLTD	61 Neutral	₹9.84B	21.32	―	0.61%	10.77%	-4.40%
ORIENTHOT	59 Neutral	₹18.11B	32.96	―	0.48%	19.69%	17.02%
AHLEAST	53 Neutral	₹2.33B	168.63	―	0.74%	6.51%	-94.16%

TAJGVK Hotels & Resorts Ltd. Corporate Events

GVK-Bhupal Family to Take Majority Control as IHCL Shifts TAJ GVK Alliance to Asset-Light Management Model

TAJ GVK Hotels & Resorts Limited announced that the long-standing joint venture between the GVK-Bhupal family and Indian Hotels Company (IHCL) is being restructured into a long-term management arrangement, with IHCL signing an agreement to sell its 25.52% stake in TAJ GVK to the GVK-Bhupal family. Following the transaction, the GVK-Bhupal family will hold 74.99% of the company while IHCL will continue to operate six existing hotels and the upcoming Taj in Yelahanka, Bengaluru under management contracts, aligning with IHCL’s capital-light ‘Accelerate 2030’ strategy and boosting its capital-light inventory to 67%. Both partners signaled an intention to jointly pursue new hospitality opportunities in India, with TAJ GVK targeting growth to around 4,000 keys over five years, a move that underscores confidence in the sector’s expansion and is expected to enhance returns and strengthen the company’s and IHCL’s positioning in key urban markets.