WEBSITE BSE:514402 NSE: ECOHOTELS Inc. Year: 1987 Industry: Hotel, Resort & Restaurants My Bucket: Add Stock
Last updated: 11:24
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1. Business Overview
Eco Hotels & Resorts Ltd. operates in the hotel, resort, and restaurant sector in India. Given its name, the company likely focuses on developing, owning, managing, or leasing properties with an emphasis on sustainability, eco-friendly practices, and responsible tourism. Its core business model involves providing accommodation, food & beverage services, and other hospitality amenities to travelers. The company primarily makes money through room night bookings, revenue generated from its restaurants and bars, event hosting (banquets, conferences), and ancillary services like spas or recreational activities at its properties.
2. Key Segments / Revenue Mix
Specific revenue breakdowns for Eco Hotels & Resorts Ltd. are not publicly available within the scope of this analysis. However, typical revenue streams for a hotel company would include:
Accommodation: The primary revenue driver, from room rentals for individual guests and groups.
Food & Beverage (F&B): Revenue from restaurants, cafes, bars, room service, and catering for events.
Banquets & Conferences (MICE): Earnings from hosting corporate meetings, incentives, conferences, and exhibitions, as well as social events like weddings.
Other Services: Revenue from amenities such as spas, gyms, laundry services, gift shops, and recreational activities.
3. Industry & Positioning
The Indian hotel, resort, and restaurant industry is highly competitive and diverse, comprising a mix of international chains, national brands, regional players, and independent properties. It is segmented by star ratings, target clientele (business, leisure, MICE), and location (urban, resort, pilgrimage). Eco Hotels & Resorts Ltd. appears to position itself within the niche of sustainable or eco-friendly hospitality. This differentiates it from traditional players by appealing to environmentally conscious travelers and potentially commanding a premium for its green initiatives, aligning with a growing global trend towards responsible tourism.
4. Competitive Advantage (Moat)
For Eco Hotels & Resorts Ltd., potential competitive advantages could stem from:
Niche Specialization/Brand: A strong, authentic "eco" brand identity can attract a specific customer segment and build loyalty among those prioritizing sustainable travel. Consistently delivering on this promise can create a reputation that is hard for generalist competitors to replicate without significant investment and commitment.
Location: Properties situated in pristine natural environments or key eco-tourism destinations can offer unique experiences that are difficult to replicate.
However, building a strong, recognized brand and scaling operations while maintaining eco-credentials requires significant investment and consistent execution. The barrier to entry for individual "eco-friendly" properties can be lower, but a credible, large-scale eco-hotel chain does present a higher barrier.
5. Growth Drivers
Key factors that could drive growth for Eco Hotels & Resorts Ltd. over the next 3-5 years include:
Growing Sustainable Tourism Demand: Increasing global and domestic awareness of environmental issues is leading to a greater preference for eco-friendly travel options.
Rising Disposable Incomes: Increasing affluence in India fuels domestic tourism and leisure travel, including niche segments.
Government Support for Tourism: Initiatives to promote tourism infrastructure and specific eco-tourism circuits can benefit the company.
Expansion & Geographic Diversification: Opening new properties in established or emerging eco-tourism destinations across India.
Partnerships & Collaborations: Forming alliances with eco-tourism promoters, travel agencies, or sustainability organizations to expand reach and credibility.
6. Risks
Economic Downturns: Hospitality is cyclical; economic slowdowns reduce discretionary travel and corporate spending, impacting occupancy and revenue.
Intense Competition: The Indian hospitality market is highly fragmented, with numerous local and international players vying for market share.
"Greenwashing" Perception: Failure to genuinely implement and communicate sustainable practices could lead to a loss of trust and brand damage. Implementing eco-friendly practices can also incur higher operational costs.
Regulatory Changes: Environmental regulations or changes in tourism policies could impact operations or development plans.
Geopolitical and Health Crises: Events like pandemics or political instability can severely disrupt travel and tourism.
Real Estate & Operational Costs: High costs of acquiring or leasing properties, coupled with rising labor, energy, and raw material costs.
7. Management & Ownership
Specific details regarding the promoters and management team of Eco Hotels & Resorts Ltd. are not available within this brief. However, for a company in this sector, the vision and execution capabilities of the promoters and senior management are critical. Strong leadership with deep industry experience, a clear strategic direction for sustainable growth, and robust operational expertise are essential for navigating the competitive landscape and building a credible eco-friendly brand. Ownership structure typical for Indian companies often involves a significant promoter holding.
8. Outlook
Eco Hotels & Resorts Ltd. operates in a promising niche within the robust Indian hospitality sector. The bull case rests on the increasing global and domestic demand for sustainable travel experiences, which aligns perfectly with the company's apparent core identity. If the company can effectively build a strong, authentic eco-friendly brand, secure prime locations, and scale its operations efficiently while maintaining its sustainability commitments, it could capture a significant share of this growing market.
However, the bear case highlights significant challenges. The company faces intense competition from both mainstream hotel chains and other specialized players. It must successfully manage the potentially higher operational costs associated with genuine eco-friendly practices without pricing itself out of the market. Furthermore, maintaining credibility in the "eco" space requires consistent effort and transparency to avoid accusations of greenwashing, which could severely damage its brand. The overall economic climate and unforeseen external shocks also remain critical factors influencing discretionary travel. Its success hinges on its ability to differentiate effectively and execute its sustainable vision profitably.
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Market Cap ₹97 Cr.
Stock P/E -27.3
P/B 2.5
Current Price ₹14.8
Book Value ₹ 5.8
Face Value 10
52W High ₹21.3
Dividend Yield 0%
52W Low ₹ 8.5
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 2 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 0 | 0 |
| Total Income | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 2 | 2 |
| Total Expenditure | 2 | 2 | 1 | -1 | 2 | 2 | 2 | 1 | 2 | 7 |
| Operating Profit | -2 | -1 | -1 | 1 | -1 | -1 | -1 | -0 | -1 | -4 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -2 | -1 | -1 | 1 | -1 | -2 | -1 | -1 | -2 | -6 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | -1 | 0 | 0 | 0 | -1 |
| Profit After Tax | -2 | -1 | -1 | 1 | -1 | -1 | -1 | -1 | -2 | -5 |
| Adjustments | 0 | 0 | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -2 | -1 | -1 | 1 | -1 | -1 | -1 | -1 | -2 | -5 |
| Adjusted Earnings Per Share | -0.7 | -0.4 | -0.2 | 0.2 | -0.3 | -0.2 | -0.3 | -0.2 | -0.4 | -1 |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales | 5 | 4 | 0 | 0 | 4 |
| Other Income | 0 | 0 | 0 | 1 | 1 |
| Total Income | 5 | 4 | 1 | 1 | 5 |
| Total Expenditure | 5 | 4 | 5 | 4 | 12 |
| Operating Profit | 0 | 0 | -4 | -3 | -6 |
| Interest | 0 | 0 | 1 | 0 | 2 |
| Depreciation | 0 | 0 | 0 | 0 | 2 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 0 | 0 | -6 | -3 | -10 |
| Provision for Tax | 0 | 0 | 0 | 1 | -1 |
| Profit After Tax | 0 | 0 | -6 | -4 | -9 |
| Adjustments | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 0 | 0 | -6 | -4 | -9 |
| Adjusted Earnings Per Share | 0.3 | 0.4 | -1.9 | -0.7 | -1.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | -100% | 0% | 0% |
| Operating Profit CAGR | 0% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -7% | -25% | 8% | 5% |
| ROE Average | -13% | -4% | -3% | -3% |
| ROCE Average | -10% | -12% | -9% | -9% |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Shareholder's Funds | -39 | -39 | 21 | 34 |
| Minority's Interest | 0 | 0 | 16 | 0 |
| Borrowings | 48 | 48 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 2 |
| Total Current Liabilities | 0 | 0 | 2 | 2 |
| Total Liabilities | 10 | 10 | 38 | 38 |
| Fixed Assets | 4 | 4 | 17 | 19 |
| Other Non-Current Assets | 0 | 0 | 0 | 11 |
| Total Current Assets | 5 | 5 | 21 | 8 |
| Total Assets | 10 | 10 | 38 | 38 |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 1 | 1 | 21 |
| Cash Flow from Operating Activities | 0 | 1 | -6 | -13 |
| Cash Flow from Investing Activities | -1 | -0 | 0 | -84 |
| Cash Flow from Financing Activities | 1 | 0 | 25 | 77 |
| Net Cash Inflow / Outflow | 0 | 0 | 20 | -21 |
| Closing Cash & Cash Equivalent | 1 | 2 | 21 | 0 |
| # | Mar 2017 | Mar 2018 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.32 | 0.38 | -1.87 | -0.68 |
| CEPS(Rs) | 0.55 | 0.63 | -1.86 | -0.62 |
| DPS(Rs) | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | -88.42 | -88.03 | 6.89 | 6.58 |
| Core EBITDA Margin(%) | 4.52 | 6.14 | -2635.06 | -2079.83 |
| EBIT Margin(%) | 3.43 | 4.37 | -2436.94 | -1735.51 |
| Pre Tax Margin(%) | 2.97 | 3.95 | -3107.28 | -1796.38 |
| PAT Margin (%) | 2.97 | 3.85 | -3117.67 | -2142.75 |
| Cash Profit Margin (%) | 5.06 | 6.31 | -3103 | -1927.36 |
| ROA(%) | 1.48 | 1.75 | -23.33 | -9.29 |
| ROE(%) | 0 | 0 | 0 | -12.93 |
| ROCE(%) | 1.71 | 2 | -28.97 | -10.47 |
| Receivable days | 203.43 | 212.54 | 2494.42 | 40.56 |
| Inventory Days | 80.46 | 87.23 | 0 | 177.65 |
| Payable days | 0 | 8.17 | 0 | -1147.68 |
| PER(x) | 0 | 0 | 0 | 0 |
| Price/Book(x) | 0 | 0 | 5.26 | 2.38 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 10.84 | 11.65 | 489.27 | 446.15 |
| EV/Core EBITDA(x) | 196.26 | 170.58 | -20.2 | -29.35 |
| Net Sales Growth(%) | 0 | -8.22 | -95.89 | -8 |
| EBIT Growth(%) | 0 | 17.16 | -2389.46 | 34.48 |
| PAT Growth(%) | 0 | 19.23 | -3423.95 | 36.77 |
| EPS Growth(%) | 0 | 19.24 | -585.81 | 63.33 |
| Debt/Equity(x) | -1.25 | -1.25 | 0 | 0 |
| Current Ratio(x) | 79.92 | 33.53 | 11.57 | 4.33 |
| Quick Ratio(x) | 62.65 | 26.65 | 11.57 | 4.29 |
| Interest Cover(x) | 7.46 | 10.24 | -3.64 | -28.51 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 57.96 | 55.24 | 38.08 | 38.08 | 38.08 | 38.08 | 38.08 | 29.98 | 30.41 | 30.41 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.01 | 0 | 0 | 2.43 | 2.43 | 2.43 | 2.43 | 1.91 | 1.91 | 1.91 |
| Public | 42.04 | 44.75 | 61.92 | 59.49 | 59.49 | 59.49 | 59.49 | 68.1 | 67.67 | 67.67 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.73 | 1.73 | 1.96 | 1.96 | 1.96 | 1.96 | 1.96 | 1.96 | 1.99 | 1.99 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Public | 1.26 | 1.4 | 3.19 | 3.06 | 3.06 | 3.06 | 3.06 | 4.45 | 4.43 | 4.43 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2.99 | 3.13 | 5.15 | 5.15 | 5.15 | 5.15 | 5.15 | 6.54 | 6.54 | 6.54 |
* The pros and cons are machine generated.
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