Company Overview

TGB Banquets and Hotels Limited, incorporated in 1999, is a prominent hospitality services company headquartered in Ahmedabad, Gujarat. 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 provides restaurant, banquet, and hotel services in India, establishing itself as a diversified player in the hospitality sector with operations spanning multiple segments.

The company operates through a well-structured business model that enables it to serve diverse customer segments across the hospitality spectrum. With its registered office located at The Grand Bhagwati, Plot No 380 S G Highway, Ahmedabad, Gujarat, the company has built a strong presence in the Gujarat market while expanding its footprint in other regions.

Business Segments and Operations

TGB's business model is strategically divided into three main parts: outdoor catering, managing hospitality properties, and self-owned banquet hotels. This diversified approach allows the company to capture revenue from multiple streams within the hospitality industry.

The company operates a hotel in Ahmedabad and provides outside catering services, along with operating restaurants and food courts. TGB's economy hotel brand, TGB Express, is currently operational at Ahmedabad and Nadiad, providing affordable accommodation options to travelers.

The company operates hotel under The Grand Bhagwati name located in Ahmedabad. It also offers dining under the Café Piano and Mr. & Mrs. Somani brand names, along with food and catering services. The company also runs and controls TGB Restaurants, TGB food courts, and TGB bakery shops.

The company manages clubs and institutions, such as Karnavati Club, Rajpath Club, and Patang. The company owns and manages a four-star category hotel in Ahmedabad. The company's project, the Grand Bhagwati Palace, is located in Indore, India with luxurious amenities, featuring approximately 115 rooms, 10 suites, and a banquet facility.

Financial Performance and Market Position

TGB Banquets & Hotels Ltd has a market capitalization of ₹31.2 crores. The company reported revenue of ₹34.8 crores with a loss of ₹3.54 crores. The company has an operating revenue of Rs. 35.34 crores on a trailing 12-month basis.

The company's recent quarterly performance shows mixed results. Net profit declined 17.65% to Rs 0.14 crore in the quarter ended June 2024 as against Rs 0.17 crore during the previous quarter ended June 2023, with sales declining 7.82% to Rs 7.07 crore in Q1 FY25. However, net profit rose 16.67% to Rs 0.21 crore in the quarter ended September 2024, though sales declined 1.37% to Rs 8.61 crore compared to the previous year.

Key financial metrics reveal both strengths and challenges:

• Annual Revenue: De-growth of -5% needs improvement.

• Pre-tax Margin: -10%.

• Return on Equity (ROE): -4%.

• Debt to Equity Ratio: A reasonable ratio of 4%, indicating a healthy balance sheet.

• Debtor Days: Improved significantly from 97.6 to 61.6 days.

• Interest Coverage Ratio: Low.

Stock Performance and Valuation

TGB Banquets & Hotels Ltd's 52-week high share price is ₹18.49 and 52-week low share price is ₹8.35. The stock is trading at 0.42 times its book value with a book value of ₹25.4 per share.

The stock's recent performance shows volatility with mixed trends across different time periods:

• Last 1 Month: Share price moved down by 4.02% on BSE.

• Last 3 Months: Share price moved up by 16.57% on BSE.

• Last 12 Months: Share price moved down by 29.86% on BSE.

• Last 3 Years: Share price moved up by 38.77% on BSE.

Management and Corporate Structure

In the main management structure, Narendra Somani serves as Chairman, and Arpita Hardik Shah is the Company Secretary. Promoter holding has decreased over the last quarter by -0.48%, with promoter holding declining to 31.23% as of March 2025 from 31.71% as of June 2024.

The company maintains regulatory compliance and has received credit ratings for its operations. TGB Hotels confirmed it is not classified as a Large Corporate, with borrowings of Rs 6.14 crores and a CARE B+ rating for FY 2024-25.

Industry Position and Future Outlook

TGBHOTELS underperformed the Indian Hospitality industry, which returned 66.8% over the past year, though it exceeded the Indian Market, which returned 45.2% over the past year. The stock has maintained a stable share price without significant volatility in the past 3 months, with weekly volatility of 8% remaining stable over the past year.

The hospitality sector in India continues to show growth potential, and TGB's diversified business model positions it to capitalize on various segments including hotels, banquets, catering, and restaurant operations. The company's focus on both economy and premium segments through brands like TGB Express and The Grand Bhagwati provides flexibility to serve different market segments.

TGB Banquets & Hotels Ltd trades on both NSE (TGBHOTELS) and BSE (532845), providing investors with liquidity options across major Indian stock exchanges. The company's strategic location in Gujarat, combined with its expansion into other markets like Indore, reflects its growth ambitions in India's expanding hospitality market.