Hidden Gem: Penny stock held by RK Damani with zero debt and 45% ROCE to watch out for

Synopsis:- A marquee investor maintained a steady ~4.18% stake after a bonus-led rise to 3.86 million shares. Revenue fell 9% to ₹15.19 crore, losses widened to ₹0.98 crore, yet capital efficiency stayed strong with ROCE 45.3%, ROE 34.4%, and near-zero debt.

India’s hotels and resorts sector is booming, fueled by surging tourism and infrastructure growth. In 2025, the hospitality market hits USD 24.23 billion, with resorts at USD 14 billion in 2024, eyeing a 21.8% CAGR to 2030. Branded hotels boast 68% occupancy—the highest in a decade—while RevPAR jumped 16.3% in Q1 2025, backed by 9,500 new keys added. Strong demand promises 7-9% revenue growth this FY.

With a market capitalisation of Rs 529.67 crore, the shares of Advani Hotels & Resorts (India) Ltd closed at Rs 57.30 per share, decreased around 0.83 percent as compared to the previous closing price of Rs 57.78 apiece.

Prominent Investor

Radhakishan Damani’s holding reflects steady, long-term conviction. His shareholding increased from 1,930,009 to 3,860,018 shares in December 2023, primarily due to a bonus issue adjustment, not fresh market purchases.

Despite the rise in absolute shares, his ownership remained stable at around 4.18%. From March 2024 to September 2025, the holding stayed constant at 3.86 million shares, with zero shares pledged, underscoring consistency rather than aggressive stake expansion.

Financial Highlights

Advani Hotels’ latest numbers show pressure on operations, with revenue slipping 9% from  Rs 16.71 crore to  Rs 15.19 crore, signalling softer demand or pricing. The widening net loss from  Rs 0.56 crore to  Rs 0.98 crore suggests rising costs or weaker margins, indicating the need for stronger cost control or demand recovery.

Advani Hotels shows strong capital efficiency with a ROCE of 45.3% and ROE of 34.4%, both well above sector averages. These metrics indicate high profitability and effective use of shareholder capital, reflecting solid operational performance despite its mid-sized scale.

Its Debt-to-equity of just 0.01 highlights a virtually debt-free balance sheet, reducing financial risk. A Piotroski score of 7 signals healthy fundamentals, while the industry P/E of 33.6 versus its own 21.6 suggests the stock remains reasonably valued relative to peers.

Advani Hotels & Resorts (India) Ltd is a long-established hospitality company best known for operating the premium Caravela Beach Resort in Goa. Incorporated in 1987, it focuses on upscale leisure tourism, offering high-quality stay experiences. The company combines strong asset ownership with consistent operational performance in India’s growing travel market.

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