Advani Hotels in Focus After Reporting 110% YoY Revenue Growth in Q3
Advani Hotels: Advani Hotels & Resorts (India) Limited has grabbed the spotlight after posting a stellar performance in its Q3FY25 results. The hospitality firm, which owns the luxurious Caravela Beach Resort in Goa, reported a remarkable 110% quarter-on-quarter (QoQ) increase in revenue. This robust growth, coupled with a turnaround from a loss to profit, has driven investor interest, pushing the stock up by nearly 4% in intraday trade.
Stock Performance & Market Sentiment
Advani Hotels, with a market capitalization of ₹604 crore, saw its stock open at ₹65.40, marking a 3.61% rise from the previous close. The stock’s 1-month return stands at 3%, while its 5-year return is an impressive 123%.
The strong Q3 results have sparked positive sentiment among investors, reinforcing confidence in the company’s ability to sustain growth in the hospitality sector. The announcement of a 50% dividend (₹1 per share), amounting to a total payout of ₹9.42 crore, further enhances the stock’s appeal to income-focused investors.
Q3FY25 Financial Performance
Advani Hotels reported a 110.35% QoQ surge in revenue, rising from ₹16.70 crore in Q2FY25 to ₹35.13 crore in Q3FY25. On a year-on-year (YoY) basis, revenue increased by 8.82%, up from ₹32.28 crore in Q3FY24.
The company also achieved a significant turnaround in profitability. From reporting a loss of ₹0.56 crore in Q2FY25, Advani Hotels posted a net profit of ₹11.91 crore in Q3FY25. This represents a 28.06% YoY growth, up from ₹9.30 crore in Q3FY24.
The key driver of this revenue surge was not an increase in occupancy but a rise in Total Revenue per Occupied Room per night, which grew 10.5% YoY to ₹24,065 from ₹21,783 last year.
| Financial Metric | Q3FY25 | Q2FY25 | Q3FY24 | YoY Growth (%) | QoQ Growth (%) |
|---|---|---|---|---|---|
| Revenue (₹ Cr.) | 35.13 | 16.70 | 32.28 | 8.82% | 110.35% |
| Net Profit (₹ Cr.) | 11.91 | -0.56 | 9.30 | 28.06% | Turnaround |
| Occupancy Rate (%) | 84.9 | – | 85.4 | -0.5% | – |
| Revenue per Room (₹) | 24,065 | – | 21,783 | 10.5% | – |
Key Financial Ratios
Advani Hotels continues to demonstrate strong financial health, with high return ratios and minimal debt.
| Metric | Value |
|---|---|
| Market Cap | ₹ 604 Cr. |
| Current Price | ₹ 65.1 |
| High / Low | ₹ 91.6 / 58.4 |
| Stock P/E | 23.6 |
| Industry P/E | 37.7 |
| ROCE | 48.2 % |
| ROE | 36.9 % |
| Debt to Equity | 0.02 |
| Debt | ₹ 1.04 Cr. |
| Book Value | ₹ 7.30 |
| Price to Book Value | 8.92 |
| Dividend Yield | 2.77 % |
| PEG Ratio | 1.40 |
| Intrinsic Value | ₹ 27.8 |
| Graham Number | ₹ 21.3 |
| Piotroski Score | 6.00 |
Growth Drivers & Industry Outlook
1. Strong Pricing Power & Revenue Optimization
Despite a slight dip in occupancy rates from 85.4% last year to 84.9% in Q3FY25, Advani Hotels has been able to increase revenue per room by 10.5% YoY, showcasing its ability to attract premium-paying guests. This shift aligns with Goa’s evolving tourism landscape, which is moving toward high-spending luxury travelers rather than mass tourism.
2. Boost from Goa’s Evolving Tourism Market
The hospitality industry in Goa is witnessing a transformation, with a greater focus on high-end tourism. The government’s infrastructure improvements, better connectivity, and luxury-focused initiatives are positioning the state as a premier destination, similar to Southeast Asian hotspots.
3. Dividend Payout & Shareholder Value
The company’s decision to declare a 50% dividend reflects its confidence in future earnings and commitment to rewarding shareholders. With a dividend yield of 2.77%, Advani Hotels remains an attractive option for investors seeking stable returns.
About Advani Hotels & Resorts
Established in 1987, Advani Hotels & Resorts (India) Limited owns and operates the prestigious Caravela Beach Resort, a five-star deluxe property located in South Goa. Spread over 24 acres on Varca Beach, the resort boasts 198 rooms, private villas, a golf course, an Ayurveda center, and multiple fine dining options.
The company’s focus on luxury hospitality, strong operational efficiency, and strategic pricing has helped it remain competitive in Goa’s evolving tourism sector.
Final Thoughts: Is Advani Hotels a Good Investment?
Advani Hotels’ strong Q3FY25 results demonstrate robust revenue growth, profitability turnaround, and operational efficiency. With Goa’s shift towards luxury tourism and the company’s ability to optimize revenue per room, future earnings potential remains strong.
While the stock has delivered 123% returns in five years, it currently trades at a high price-to-book ratio of 8.92, suggesting it is relatively expensive compared to its intrinsic value of ₹27.8. However, low debt, high ROCE (48.2%), and a solid dividend yield make it an attractive pick for long-term investors.
Investors should consider market volatility, sector trends, and future earnings sustainability before making investment decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.