WEBSITE BSE:531198 NSE: DHANADACOL Inc. Year: 1986 Industry: Hotel, Resort & Restaurants My Bucket: Add Stock
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1. Business Overview
Dhanada Corporation Ltd. operates in the Hotel, Resort & Restaurants sector in India. Its core business model likely involves owning, managing, or operating hospitality properties such as hotels, resorts, or standalone restaurants. The company generates revenue primarily by providing accommodation services (room bookings), food and beverage sales (through restaurants, bars, room service), and potentially event hosting, banqueting, and other ancillary services (e.g., spas, leisure activities). Its operations cater to a mix of leisure travelers, business guests, and local patrons for dining and events.
2. Key Segments / Revenue Mix
Specific revenue segmentation for Dhanada Corporation Ltd. is not publicly available. However, typical revenue streams for companies in this industry include:
Accommodation: Revenue from room nights sold.
Food & Beverage (F&B): Sales from restaurants, cafes, bars, room service, and catering.
Banquets & Events: Revenue from hosting weddings, conferences, meetings, and other social or corporate events.
Other Services: Income from spas, health clubs, laundry, gift shops, or other leisure facilities.
The precise contribution of each segment would depend on the company's specific property types, target clientele, and operational focus.
3. Industry & Positioning
The Hotel, Resort & Restaurants industry in India is highly competitive and diverse, comprising large international chains, national hospitality groups, regional players, and numerous independent establishments. The demand is primarily driven by domestic and international tourism, business travel, and the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector. Without specific details on Dhanada Corporation Ltd.'s scale, property count, or geographic footprint, its precise positioning is difficult to ascertain. It likely operates within this competitive landscape, competing on factors such as location, service quality, pricing, amenities, and local brand reputation. It could be a regional operator, an owner of specific properties, or a smaller chain.
4. Competitive Advantage (Moat)
Without specific company details, identifying a durable competitive advantage (moat) for Dhanada Corporation Ltd. is not possible. Potential moats in the hospitality sector, which the company might possess, include:
Prime Location: Owning properties in highly desirable or strategic areas (e.g., tourist hotspots, business districts).
Strong Local Brand/Reputation: A well-established name and reputation for quality service within its operating regions.
Operational Efficiency: Ability to manage costs effectively, leading to superior profitability.
Unique Offering: Specialization in a niche (e.g., heritage hotels, eco-resorts, specific cuisine restaurants).
However, the hospitality industry generally faces low switching costs for customers and high capital intensity, making sustainable moats challenging to build.
5. Growth Drivers
Key factors that could drive growth for Dhanada Corporation Ltd. over the next 3-5 years, assuming it aligns with broader industry trends in India, include:
Growth in Domestic Tourism: Rising disposable incomes and increasing interest in domestic travel.
Government Initiatives: Policies promoting tourism infrastructure development and destination marketing (e.g., "Incredible India" campaigns).
Business Travel Resurgence: Recovery and growth in corporate travel and MICE events post-pandemic.
Infrastructure Development: Improved connectivity (airports, roads, railways) to tourist destinations.
Digitalization: Enhanced reach through online travel agencies (OTAs) and direct digital booking platforms.
Urbanization & Lifestyle Changes: Increased demand for dining out and leisure experiences in urban and semi-urban areas.
6. Risks
Dhanada Corporation Ltd., like other companies in its sector, faces several risks:
Economic Downturns: Reduced discretionary spending and travel budgets during economic slowdowns.
Intense Competition: Price wars, new entrants, and competition from both organized chains and unorganized players.
Seasonality: Revenue fluctuations due to seasonal demand variations typical in the hospitality industry.
Geopolitical and Health Crises: Events like pandemics (e.g., COVID-19), natural disasters, or civil unrest can severely impact travel and hospitality demand.
Regulatory Changes: Changes in licensing, taxation (e.g., GST), environmental regulations, or labor laws.
Operational Costs: High fixed costs (real estate, maintenance) and variable costs (staff, food, energy) can impact profitability.
Digital Disruption: Dependence on OTAs and commission costs, or challenges in direct booking conversion.
7. Management & Ownership
Specific details regarding the promoters, management team, and ownership structure of Dhanada Corporation Ltd. are not publicly available within the scope of this analysis. In India, many listed companies, particularly smaller ones, are promoter-led. The quality of management, their experience in the hospitality sector, corporate governance practices, and the ownership stake held by the founding family or group are crucial factors influencing the company's long-term performance and strategic direction.
8. Outlook
The outlook for Dhanada Corporation Ltd. is balanced between the potential for growth in the Indian hospitality sector and inherent industry challenges.
Bull Case: The company could benefit significantly from India's robust economic growth, increasing domestic tourism, and a post-pandemic recovery in business and leisure travel. If it possesses well-located properties, delivers consistent service quality, and manages costs effectively, it could capture a share of the growing market demand.
Bear Case: The company operates in a highly fragmented and competitive industry with relatively low barriers to entry for basic services. Without a strong brand, unique offering, or significant scale, it may struggle to differentiate itself. It remains susceptible to economic downturns, unforeseen global events impacting travel, and intense price competition, which could pressure its margins and growth prospects.
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Market Cap ₹13 Cr.
Stock P/E -2
P/B -3.4
Current Price ₹2.3
Book Value ₹ -0.7
Face Value 1
52W High ₹0
Dividend Yield 0%
52W Low ₹ 0
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 | Jun 2022 | Sep 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 0 | 1 | 1 | 1 | 0 | 1 | 2 | 2 | 2 | 2 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Income | 0 | 1 | 1 | 1 | 0 | 1 | 2 | 2 | 2 | 2 |
| Total Expenditure | 1 | 1 | 1 | 2 | 1 | 2 | 2 | 2 | 2 | 2 |
| Operating Profit | -1 | -0 | 0 | -1 | -1 | -0 | 0 | -0 | 0 | 0 |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -2 | -1 | -1 | -2 | -2 | -2 | -1 | -2 | -1 | -1 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -2 | -1 | -1 | -2 | -2 | -2 | -1 | -2 | -1 | -1 |
| Adjustments | -0 | 0 | -0 | -0 | 0 | 0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | -2 | -1 | -1 | -2 | -2 | -2 | -1 | -2 | -1 | -1 |
| Adjusted Earnings Per Share | -0.3 | -0.2 | -0.2 | -0.4 | -0.3 | -0.3 | -0.2 | -0.3 | -0.2 | -0.2 |
| #(Fig in Cr.) | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 8 | 9 | 8 | 9 | 9 | 9 | 11 | 11 | 9 | 3 | 5 | 8 |
| Other Income | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Income | 9 | 9 | 9 | 9 | 9 | 9 | 11 | 11 | 9 | 3 | 5 | 8 |
| Total Expenditure | 7 | 6 | 6 | 7 | 6 | 8 | 9 | 9 | 8 | 4 | 6 | 8 |
| Operating Profit | 2 | 3 | 3 | 2 | 2 | 2 | 2 | 2 | 1 | -1 | -1 | 0 |
| Interest | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 4 | 4 | 5 | 4 |
| Depreciation | 1 | 1 | 1 | 2 | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 0 |
| Exceptional Income / Expenses | -1 | -0 | -0 | -4 | -2 | -1 | -1 | -0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -1 | 0 | 0 | -6 | -4 | -4 | -3 | -2 | -3 | -6 | -6 | -5 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -1 | 0 | 0 | -6 | -4 | -4 | -3 | -2 | -3 | -6 | -6 | -5 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -1 | 0 | 0 | -6 | -4 | -4 | -3 | -2 | -3 | -6 | -6 | -5 |
| Adjusted Earnings Per Share | -0.3 | 0.1 | 0 | -1.1 | -0.7 | -0.6 | -0.5 | -0.3 | -0.6 | -1.1 | -1.1 | -0.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 67% | -23% | -11% | -5% |
| Operating Profit CAGR | 0% | NAN% | NAN% | NAN% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -14% | -12% | -14% | -8% |
| ROE Average | -331% | -144% | -92% | -47% |
| ROCE Average | -4% | -3% | -1% | -1% |
| #(Fig in Cr.) | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 24 | 33 | 33 | 27 | 22 | 19 | 16 | 14 | 11 | 5 | -1 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 13 | 6 | 5 | 4 | 3 | 2 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Total Current Liabilities | 6 | 9 | 9 | 11 | 13 | 16 | 20 | 23 | 27 | 32 | 36 |
| Total Liabilities | 43 | 48 | 48 | 42 | 39 | 37 | 37 | 38 | 39 | 38 | 36 |
| Fixed Assets | 35 | 34 | 32 | 30 | 28 | 26 | 25 | 24 | 24 | 23 | 22 |
| Other Non-Current Assets | 6 | 10 | 11 | 11 | 9 | 8 | 7 | 7 | 7 | 7 | 7 |
| Total Current Assets | 3 | 4 | 5 | 1 | 2 | 3 | 5 | 7 | 8 | 8 | 7 |
| Total Assets | 43 | 48 | 48 | 42 | 39 | 37 | 37 | 38 | 39 | 38 | 36 |
| #(Fig in Cr.) | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 1 | 3 | 2 | 5 |
| Cash Flow from Operating Activities | 2 | -3 | 1 | 2 | 1 | 1 | 1 | 1 | -0 | 2 | -3 |
| Cash Flow from Investing Activities | -3 | 0 | 0 | -0 | -1 | -0 | -0 | -0 | 0 | -0 | -0 |
| Cash Flow from Financing Activities | 2 | 2 | -1 | -1 | -0 | -1 | -0 | 0 | 0 | 1 | -0 |
| Net Cash Inflow / Outflow | 1 | -1 | 0 | -0 | 0 | 0 | 1 | 1 | -0 | 3 | -3 |
| Closing Cash & Cash Equivalent | 2 | 0 | 0 | 0 | 0 | 0 | 1 | 3 | 2 | 5 | 2 |
| # | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -0.26 | 0.08 | 0.02 | -1.05 | -0.73 | -0.63 | -0.54 | -0.3 | -0.59 | -1.06 | -1.12 |
| CEPS(Rs) | -0.01 | 0.32 | 0.26 | -0.68 | -0.36 | -0.32 | -0.32 | -0.12 | -0.46 | -0.93 | -1 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 4.83 | 5.89 | 5.91 | 4.8 | 4.02 | 3.39 | 2.85 | 2.55 | 1.96 | 0.9 | -0.22 |
| Core EBITDA Margin(%) | 23.4 | 34.4 | 28.51 | 23.81 | 24.66 | 14.44 | 17.61 | 20.19 | 10.05 | -39.96 | -19.4 |
| EBIT Margin(%) | 2.76 | 23.96 | 22.73 | -47.38 | -25.18 | -15.19 | -2.74 | 12.82 | 2.8 | -61.11 | -30.33 |
| Pre Tax Margin(%) | -15.31 | 5.2 | 1.44 | -68.24 | -48.14 | -40.15 | -27.39 | -14.74 | -35.86 | -201.37 | -128.82 |
| PAT Margin (%) | -15.31 | 5.2 | 1.17 | -68.24 | -48.14 | -40.15 | -27.39 | -14.74 | -35.86 | -201.37 | -128.82 |
| Cash Profit Margin (%) | -0.3 | 20.01 | 17.02 | -43.97 | -23.6 | -20.53 | -16.42 | -6.01 | -27.69 | -177.46 | -115.06 |
| ROA(%) | -3.05 | 1.03 | 0.21 | -13.1 | -10.14 | -9.26 | -8.07 | -4.4 | -8.63 | -15.46 | -17.03 |
| ROE(%) | -5.36 | 1.63 | 0.3 | -19.63 | -16.66 | -17.12 | -17.17 | -10.94 | -26.35 | -73.83 | -330.91 |
| ROCE(%) | 0.59 | 5.03 | 4.24 | -9.52 | -5.56 | -3.69 | -0.85 | 4.04 | 0.71 | -5.03 | -4.35 |
| Receivable days | 28.26 | 30.36 | 30.53 | 27.46 | 35.89 | 39.56 | 29.13 | 39.89 | 62.83 | 155.61 | 71.53 |
| Inventory Days | 2.82 | 3.23 | 4.5 | 4.71 | 4.18 | 3.48 | 3.36 | 3.7 | 4.1 | 9.31 | 4.25 |
| Payable days | 428.4 | 276.54 | 273.84 | 213.08 | 177.81 | 160.33 | 142.5 | 113.03 | 116.42 | 622.69 | 297.7 |
| PER(x) | 0 | 155.91 | 313.56 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | 2.96 | 2.21 | 0.94 | 1.25 | 1.52 | 1.33 | 1.21 | 0.92 | 0.86 | 7.4 | 0 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 10.24 | 9.4 | 5.12 | 5.38 | 5.69 | 4.53 | 3.16 | 2.85 | 3.46 | 20.83 | 7.6 |
| EV/Core EBITDA(x) | 40.3 | 24.23 | 13.22 | 19.23 | 22.54 | 26.08 | 17.23 | 13.23 | 31.52 | -55.98 | -45.84 |
| Net Sales Growth(%) | 26.77 | 5.88 | -6.08 | 1.95 | -0.95 | 3.44 | 23.82 | 2.62 | -17.31 | -68.35 | 66.17 |
| EBIT Growth(%) | -77.15 | 817.82 | -10.89 | -312.52 | 47.35 | 37.61 | 77.64 | 579.62 | -81.93 | -790.57 | 17.53 |
| PAT Growth(%) | -147.72 | 135.98 | -78.9 | -6052.61 | 30.12 | 13.73 | 15.54 | 44.77 | -101.19 | -77.69 | -6.3 |
| EPS Growth(%) | -140.75 | 132.49 | -78.85 | -6038.42 | 30.12 | 13.72 | 15.54 | 44.77 | -101.18 | -77.69 | -6.3 |
| Debt/Equity(x) | 0.67 | 0.36 | 0.38 | 0.49 | 0.66 | 0.87 | 1.19 | 1.54 | 2.34 | 5.88 | -27.52 |
| Current Ratio(x) | 0.48 | 0.45 | 0.5 | 0.12 | 0.17 | 0.2 | 0.24 | 0.31 | 0.31 | 0.25 | 0.2 |
| Quick Ratio(x) | 0.47 | 0.44 | 0.48 | 0.11 | 0.16 | 0.19 | 0.23 | 0.31 | 0.31 | 0.25 | 0.19 |
| Interest Cover(x) | 0.15 | 1.28 | 1.07 | -2.27 | -1.1 | -0.61 | -0.11 | 0.47 | 0.07 | -0.44 | -0.31 |
| Total Debt/Mcap(x) | 0.23 | 0.16 | 0.41 | 0.39 | 0.44 | 0.65 | 0.99 | 1.67 | 2.71 | 0.8 | 0 |
| # | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 | Jun 2022 | Sep 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 57.78 | 55.8 | 55.73 | 53.7 | 53.7 | 54.26 | 54.7 | 54.75 | 51.85 | 51.67 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 |
| Public | 42 | 43.97 | 44.04 | 46.07 | 46.07 | 45.51 | 45.08 | 45.02 | 47.92 | 48.1 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 | Jun 2022 | Sep 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 3.23 | 3.12 | 3.12 | 3 | 3 | 3.04 | 3.06 | 3.06 | 2.9 | 2.89 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Public | 2.35 | 2.46 | 2.46 | 2.58 | 2.58 | 2.55 | 2.52 | 2.52 | 2.68 | 2.69 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 | 5.59 |
* The pros and cons are machine generated.
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