TGB Banquets & Hotels Ltd. (TGBHOTELS) AI Stock Analysis

• Market Cap: ₹245.13M
• Dividend Yield: N/A
• Average Volume (3M): 4.56K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.77
• Revenue Growth: 11.19%
• EPS Growth: N/A
• Country: IN
• Employees: 94
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.23
• Shares Outstanding: 29,286,400
• 10 Day Avg. Volume: 3,540
• 30 Day Avg. Volume: 4,561
• PEG Ratio: -0.10
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 3.63
• 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: 62 Neutral
• Price Target: ₹9.00 ▼(-7.69% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily supported by improving financial performance (return to profitability, strong margins, low leverage, and solid cash generation). This is tempered by mixed technicals (short-term strength but weaker longer-term trend and slightly negative MACD) and only moderately supportive valuation (P/E ~10.58, with no dividend yield data).

Positive Factors

Return to Profitability

Restoring profitability and switching EBIT from negative to positive materially improves internal capital generation and reduces refinancing risk. Durable earnings support reinvestment in operations and service quality, improving competitiveness and resilience over the next several quarters.

Strong Gross Margins

Sustained gross margin around 41% signals structural pricing power or cost control in core hospitality operations. High margins provide a buffer against revenue volatility, enable reinvestment in premium banquet and F&B services, and support long-term operational profitability.

Low Leverage & Solid Capital Structure

Very low leverage and a strong equity ratio meaningfully lower financial vulnerability to rate shocks and demand dips. This balance sheet flexibility supports discretionary capex, selective expansion, or strategic initiatives without heavy reliance on external financing over the medium term.

Negative Factors

Modest Revenue Growth

Top-line growth near 3% is slow relative to recovery narratives and limits scale benefits. Persistent weak revenue trends constrain margins expansion, capex coverage and market-share gains, making long-term margin sustainability more dependent on cost controls than organic demand growth.

Declining Stockholders' Equity

A trend of falling shareholders' equity erodes the capital cushion available for shocks and reduces borrowing headroom. If sustained, it can signal past losses or write-downs and limit strategic flexibility for reinvestment, acquisitions, or dividend policies over time.

Volatile Investing Cash Flows

Irregular investing cash flows create uncertainty about ongoing capital spending and asset maintenance. Volatility may reflect opportunistic asset moves or inconsistent capex, which complicates capacity planning and could impair long-term service levels or growth if underinvestment recurs.

TGB Banquets & Hotels Ltd. Business Overview & Revenue Model

Company Description

TGB Banquets and Hotels Limited provides restaurant, banquet, and hotel services in India. It operates hotels under The Grand Bhagwati name in Ahmedabad. The company also offers dining under the Café Piano and Mr. & Mrs. Somani name; and catering services. In addition, it operates convention centers under The Grand Bhagwati name, as well as clubs and events. The company was formerly known as Bhagwati Banquets and Hotels Limited and changed its name to TGB Banquets and Hotels Limited in April 2013. TGB Banquets and Hotels Limited was founded in 1989 and is based in Ahmedabad, India.

How the Company Makes Money

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TGB Banquets & Hotels Ltd. Financial Statement Overview

Summary

Financials show a clear recovery with a return to profitability, strong gross margin (~41.3% in 2025), and improved EBIT versus the prior year. Balance sheet leverage is low (debt-to-equity ~0.21) with a solid equity ratio (~65.4%), while cash generation is healthy with positive operating cash flow and free cash flow (~85.3M in 2025). Offsets include modest revenue growth (~3.18%), declining stockholders’ equity over time, and volatility in investing cash flows.

Income Statement

The company has shown significant recovery in recent years with positive net income in the latest period after previous losses. Gross profit margin is strong at around 41.3% for 2025, and there's a remarkable improvement in EBIT from a negative value in 2024 to a positive value in 2025, indicating better operational efficiency. However, the revenue growth rate from 2024 to 2025 is modest at 3.18%, suggesting slow top-line growth.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.21 in 2025, reflecting low leverage which reduces financial risk. The equity ratio is also robust at approximately 65.4%, indicating strong capital structure stability. However, there is a notable decrease in stockholders' equity over the past years, which could be a concern if the trend continues.

Cash Flow

Cash flow analysis indicates a positive trajectory with operating cash flow consistently positive over recent years, culminating in a free cash flow of approximately 85.3 million in 2025. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to earnings. However, the high volatility in cash flow from investing activities signals potential fluctuations in future cash reserves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	392.91M	374.92M	363.35M	383.76M	267.76M	147.91M
Gross Profit	192.10M	154.91M	99.13M	96.26M	153.38M	88.51M
EBITDA	89.46M	86.50M	34.08M	46.53M	-179.04M	-50.18M
Net Income	19.87M	19.44M	-35.60M	13.63M	-203.75M	-82.45M
Balance Sheet
Total Assets	1.18B	1.16B	1.09B	1.26B	1.34B	1.64B
Cash, Cash Equivalents and Short-Term Investments	6.25M	22.01M	2.87M	5.07M	9.14M	6.09M
Total Debt	185.57M	159.92M	71.31M	159.37M	205.47M	115.67M
Total Liabilities	414.94M	402.45M	348.45M	479.70M	578.93M	672.55M
Stockholders Equity	764.77M	760.87M	741.38M	775.86M	762.05M	963.54M
Cash Flow
Free Cash Flow	-31.73M	85.25M	91.01M	46.06M	-425.88M	-3.10M
Operating Cash Flow	-30.58M	91.87M	102.39M	49.03M	-424.38M	-2.94M
Investing Cash Flow	1.07M	-6.62M	-2.23M	367.00K	502.15M	16.47M
Financing Cash Flow	13.75M	-66.11M	-102.17M	-53.48M	-74.72M	-21.34M

TGB Banquets & Hotels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TGBHOTELS, the sentiment is Negative. The current price of 9.75 is above the 20-day moving average (MA) of 9.01, above the 50-day MA of 9.26, and below the 200-day MA of 10.95, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 10.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TGBHOTELS.

TGB Banquets & Hotels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHLTD	74 Outperform	₹9.60B	21.57	―	―	-11.23%	-65.46%
ADVANIHOTR	72 Outperform	₹4.78B	12.58	―	3.31%	0.14%	7.90%
TGBHOTELS	62 Neutral	₹245.13M	10.58	―	―	11.19%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SPECIALITY	56 Neutral	₹4.65B	15.98	―	0.87%	6.66%	-21.40%
BLUECOAST	40 Underperform	₹347.63M	-38.30	―	1.37%	―	-105.55%