Benares Hotels Share Price Analysis: Targets 2026–2030 and Fundamentals

Benares Hotels share price today

Anyone who looks up the Benares Hotels share price meets a five-figure number before they meet a business. On 10 September 2026 Screener showed the stock at about ₹10,316, and that quote says more about share count than about size. Trailing twelve-month profit of ₹44 crore divided by trailing EPS of ₹337.77 implies only around 13 lakh shares in issue. The market capitalisation sitting behind that headline price is ₹1,341 crore, which places the company firmly in micro-cap territory.

One practical note before the numbers. Benares Hotels is listed only on the BSE and has no NSE line, and the Yahoo Finance feed for this code is stale, so the live quote box on this page is suppressed. Every price and range figure used here was read from Screener.in on 10 September 2026 and stays fixed at that cut-off. Nothing below recalculates when the market moves.

The business itself is small and specific: three hotels, two of them in the same city. That concentration is the entire investment question. It has delivered ROCE of 29.80% and ROE of 22.50% on a balance sheet carrying almost no debt, and it also means one city’s visitor cycle drives most of the revenue line.

What Benares Hotels actually owns

Incorporated in 1971, Benares Hotels Limited operates Taj Ganges and Taj Nadesar Palace in Varanasi, and Ginger, Gondia in Maharashtra. The Indian Hotels Company Limited, better known as IHCL, is the ultimate holding company. That is the full operating description, and its brevity is the point: there is no segment mix to untangle and no long product list standing in for a moat.

Property	Brand	Location	Why it matters for the equity
Taj Ganges	Taj	Varanasi, Uttar Pradesh	An upper-end city hotel in a single-demand market
Taj Nadesar Palace	Taj	Varanasi, Uttar Pradesh	A second property in the same city, adding rooms but no geographic spread
Ginger, Gondia	Ginger	Gondia, Maharashtra	The only asset outside Varanasi, at a different price point

A three-asset hotel owner behaves very differently from a diversified operator. Fixed costs sit under a small revenue base, so operating leverage runs hard in both directions. FY21 is the cleanest proof available in the record: sales fell to ₹24 crore, the operating margin collapsed to 1.6%, and the company reported a net loss of ₹5 crore and EPS of negative ₹40.23. Nothing about the recovery since then removes that structural sensitivity.

Readers approaching Indian travel demand from a different angle may find the comparison in our IRCTC share price target research useful, since that business earns from journey volume rather than from room nights in one city.

The IHCL link and what it does for minority holders

The parent relationship is the reason a company with three hotels carries two of the strongest hospitality brands in the country. Promoter holding is 62.58%, and the register is otherwise almost entirely retail and non-institutional.

Holder category	Stake	Reading
Promoters	62.58%	IHCL control is settled, not contested
Foreign institutions	0.02%	Effectively no foreign institutional participation
Domestic institutions	0.05%	No domestic fund is running a position of any size
Public	37.35%	The entire float, spread across non-institutional holders

Two conclusions follow. The constructive one is that brand, reservation infrastructure and operating standards arrive from a parent that runs them at national scale, which a standalone three-hotel company could never fund itself. The cautious one is that minority shareholders own a slice of an operating unit whose brand economics and related-party arrangements are decided elsewhere, and that with 0.07% of the company held between all foreign and domestic institutions combined, there is no professional holder whose scrutiny the minority can rely on. A float of 37.35% on roughly 13 lakh shares is also a liquidity constraint in its own right.

FY15 to FY26: a pandemic hole and a step change after it

The reported record splits cleanly into three phases. A flat stretch from FY15 to FY20, in which sales moved from ₹47 crore to ₹64 crore and profit went nowhere. The FY21 collapse. Then a genuine step change, in which both revenue and margin reached levels the company had never previously held.

Financial year	Sales	Operating margin	Net profit	EPS
FY19	₹60 Cr	29%	₹9 Cr	₹67.08
FY20	₹64 Cr	33%	₹11 Cr	₹81.62
FY21	₹24 Cr	1.6%	Negative ₹5 Cr	Negative ₹40.23
FY22	₹50 Cr	29%	₹6 Cr	₹43.46
FY23	₹93 Cr	39%	₹23 Cr	₹179.85
FY24	₹121 Cr	43%	₹36 Cr	₹277.23
FY25	₹135 Cr	44%	₹43 Cr	₹332.69
FY26	₹139 Cr	43%	₹43 Cr	₹332.62
TTM	₹148 Cr	42%	₹44 Cr	₹337.77

The margin move is the substantive change. The business ran at 24% to 34% operating margin through FY15 to FY20 and has run at 39% to 44% since FY23. On a ₹139 crore revenue base, that difference is worth more than several years of ordinary sales growth. Whether it is a permanent repricing of Varanasi room rates or a cyclical peak is the single most important open question in this name, and the summary financials do not answer it.

Reading the growth rates without being misled by FY21

Screener’s headline compound rates look spectacular, and they are almost entirely an artefact of where the clock starts.

Measure	10-year	5-year	3-year	Latest
Sales CAGR	11%	42%	14%	8% (TTM)
Profit CAGR	18%	59%	23%	Negative 1% (TTM)
ROE	19%	24%	27%	23% (last year)

The five-year sales CAGR of 42% and profit CAGR of 59% are measured from FY21, when sales were ₹24 crore and the company lost money. Compounding out of a pandemic trough is arithmetic, not evidence of a growth engine. The ten-year figures are the sober counterweight: 11% sales and 18% profit CAGR across a full cycle. The three-year rates of 14% and 23% sit between the two and are the most defensible anchor available for any forward assumption.

The most recent column matters most. On a trailing twelve-month basis, sales growth is 8% and profit growth is negative 1%. EPS has been essentially flat across three consecutive readings: ₹332.69 in FY25, ₹332.62 in FY26 and ₹337.77 on a TTM basis. The step change has already happened; the current question is whether anything follows it.

Margins, returns and a balance sheet with almost no debt

The capital structure is close to unlevered and has been for years.

Balance-sheet signal	FY23	FY24	FY25	FY26
Reserves	₹98 Cr	₹132 Cr	₹171 Cr	₹211 Cr
Borrowings	₹4 Cr	₹4 Cr	₹4 Cr	₹4 Cr
Total assets	₹120 Cr	₹156 Cr	₹195 Cr	₹257 Cr

Borrowings have not moved from ₹4 crore since FY22, and the debt-to-equity ratio stands at 0.02. For a hotel company, whose peers routinely carry property debt, that is a real structural advantage; the debt-to-equity ratio here is doing almost no work against the equity. It is also why ROCE of 29.80% sits meaningfully above ROE of 22.50% without any leverage flattery in the ROE figure, which is the opposite of the usual pattern and worth understanding when you read return on equity for any capital-intensive business.

One line deserves attention. Between FY25 and FY26, total assets rose by ₹62 crore while reserves rose by ₹40 crore, and borrowings did not move. Roughly ₹22 crore of the asset growth therefore came from something other than retained profit or debt. Screener’s summary does not break down what, and this article will not guess; it is a question for the annual report rather than a conclusion.

Distribution policy has changed alongside the growth. Payout was 28% to 31% of profit in FY15 to FY17 and has been 8% in FY25 and FY26. The dividend yield is 0.25%. Whatever case exists here rests on reinvestment and on returns from that reinvestment, not on income.

How the Benares Hotels share price has behaved

Period	Price CAGR
10-year	26%
5-year	47%
3-year	22%
1-year	12%

The five-year price CAGR of 47% actually trailed the flattered five-year profit CAGR of 59%, so the rating compressed across that window. It is the ten-year pair that shows the rerating: price compounded at 26% against 18% profit growth, and that is how the multiple got to where it is. The one-year figure of 12% is the first period in which price growth has been modest, and it arrives alongside flat earnings.

The 52-week range at the cut-off was ₹9,000 to ₹11,001, leaving the stock 6.23% below its high. An earlier Gale universe snapshot dated 5 August 2026 put the market capitalisation at ₹1,322 crore, against ₹1,341 crore at this cut-off. That snapshot also carries an off-high reading of 26.1% that cannot be reconciled with its own market capitalisation, so it is set down here and not used to measure the move. The float point stands without it: 37.35% of roughly 13 lakh shares is a thin book by any standard, thin float amplifies moves in both directions, and any target framework built on this stock should be read with that in mind.

Valuation at the research cut-off

Valuation measure	10 September 2026 reading	Interpretation
Screener price	₹10,316	Fixed research input, not a live quote
Market capitalisation	₹1,341 Cr	Micro-cap; liquidity and disclosure depth both matter
Trailing EPS	₹337.77	Screener TTM
Recalculated P/E	30.54×	Price divided by trailing EPS
Book value per share	₹1,636	Implies price-to-book of 6.31×
EV/EBITDA	18.8	Enterprise value is close to market cap given the debt level
PEG	1.33	Screener’s own calculation, and only a shorthand
ROCE / ROE	29.80% / 22.50%	Genuinely high, and earned without leverage
Dividend yield	0.25%	Payout is 8% of profit
Debt to equity	0.02	Effectively unlevered

The tension is straightforward. Thirty times trailing earnings is a growth rating, and trailing profit growth is currently negative 1%. Six times book is defensible when ROE is 22.50%, but hotel book values reflect historical property cost rather than replacement value, so price-to-book is a weaker guide here than it would be for a financial company. If the rate and occupancy cycle that produced the 42% to 44% margin band holds, the multiple is arguable; if that band was a peak, the same multiple is applied to earnings that stop compounding. Our guide to the P/E ratio formula covers why a high multiple on flat earnings compresses so quickly.

Valuation framework: what the multiple has to earn

The scenario model starts with TTM EPS of ₹337.77. For each year it applies EPS_TTM × (1 + growth)^(year − 2026 + 112/365) × exit P/E, then rounds the result to the nearest ₹5. The 112/365 factor represents the fraction of the first forecast year remaining from 10 September to 31 December.

Scenario	Annual EPS growth	Exit P/E	Business interpretation
Bear	6%	20×	The post-FY23 margin band proves cyclical, room-rate growth normalises, and the market rerates a three-hotel operator to a plainer multiple
Base	11%	27×	Varanasi demand keeps growing, the operating margin holds in the low forties, and the rating settles a little below today’s
Bull	16%	34×	New capacity is added and absorbed, margin stays in the forties, and the market continues to pay a premium for the parent-brand association

The multiples are anchored to the present 30.54×. Bear sits clearly below it because a de-rating is the realistic downside for a micro-cap whose earnings have paused. Base sits a little below it. Bull is modestly above it, not double it, because assuming both accelerating growth and permanent multiple expansion is how target exercises turn into wishful thinking.

The growth rates are moderated deliberately. They are anchored to the three-year sales CAGR of 14% and profit CAGR of 23% rather than to the five-year figures, which start from the FY21 trough, and the bear and base rates are pulled below even that anchor, with the bull sitting inside it rather than above, because TTM profit growth is already negative and because a company with three properties cannot grow revenue without either raising rates or adding rooms. The method behind this construction is set out in full in how to value a stock. These are scenarios, not probability-weighted forecasts.

Benares Hotels share price target 2026 to 2030

The grid above is generated only from the disclosed EPS, the three growth rates and the three exit multiples. It models nothing else. It does not account for a new property, a renovation that takes rooms out of service, an equity issue, a change in the IHCL relationship or in related-party terms, a corporate action, or the effect of a thin float on the price an actual buyer or seller would realise. It also assumes no dividend reinvestment, which given a 0.25% yield is a minor omission. Any of these would require the inputs to be rebuilt before the framework is used again.

Risks that can break the thesis

The first risk is single-city concentration. Two of the three properties sit in Varanasi, so a disruption to travel into that one city hits most of the revenue base at once. FY21 showed what a demand stop does to a small fixed-cost estate, and the cause does not have to be a pandemic; infrastructure work, a security event, or a weak festival and wedding season would all show up in the same line.

The second is margin durability. An operating margin of 42% to 44% is exceptional for a hotel company, and it is only three years old. If it reverts toward the high-twenties or low-thirties the business ran at before FY23, profit falls even with flat revenue.

The third is the starting multiple. At 30.54 times trailing earnings, with TTM profit growth at negative 1%, a large part of a favourable future is already in the price. The fourth is scale itself: with a ₹1,341 crore market capitalisation and effectively no institutional ownership, price can move on order flow rather than on news, and the disclosure available to a minority investor is thinner than for a larger company.

What would change the picture

The case strengthens if the operating margin holds in the forties across several more reported periods rather than three, if revenue growth reaccelerates above the current 8% TTM rate, if the asset growth of FY25 to FY26 turns into identifiable new capacity, and if ROCE stays near 29.80% as that capital is deployed. A restoration of payout toward the 20% to 30% range the company once maintained would also say something about management’s own view of reinvestment opportunities.

It weakens if margin slips below the FY23 level of 39%, if sales growth stays in single digits while total assets keep rising, if EPS records a fourth flat or falling reading, or if the balance-sheet expansion turns out to be working capital rather than capacity. A change in the terms on which the parent brands and services the properties would require a full reassessment, independent of any financial trend.

Monitoring scorecard

Question	Constructive evidence	Warning sign
Is the margin band durable?	Operating margin stays above 39% across further periods	Margin drifts back toward the pre-FY23 range
Is revenue growing again?	Sales growth moves back above the 3-year 14% CAGR	Growth stays near the current 8% TTM rate
Is EPS moving?	A reading clearly above ₹337.77	A fourth consecutive flat or lower figure
Where did the assets go?	New capacity or a disclosed capital project	Asset growth without a matching revenue effect
Are returns holding?	ROCE stays near 29.80% as capital is deployed	ROCE falls while total assets rise
Is the balance sheet still clean?	Borrowings stay near ₹4 crore	Debt taken on for expansion at scale
Is concentration reducing?	Revenue arriving from outside Varanasi	The portfolio stays at three properties indefinitely

FAQ

What is the Benares Hotels share price target for 2026?

The scenario grid on this page derives a 2026 figure from trailing EPS of ₹337.77, an annual growth rate and an exit P/E, adjusted for the 112 days remaining in the year from the 10 September 2026 research cut-off. Because 2026 is only a partial forecast year, the growth assumptions barely compound, so almost the whole spread in that column comes from the three exit multiples rather than from the growth rates. It is a range of modelled outcomes, not a promised price.

What is the Benares Hotels share price target for 2030?

The 2030 column compounds the same three growth rates over roughly four and a quarter years and applies the same three exit multiples, so the spread between scenarios widens considerably. Read it as a test of how much the outcome depends on the assumptions rather than as a forecast. The inputs should be rebuilt after each annual result.

What does Benares Hotels do?

Benares Hotels Limited, incorporated in 1971, operates Taj Ganges and Taj Nadesar Palace in Varanasi and Ginger, Gondia in Maharashtra. It is a hotel owner and operator with three properties, two of which are in the same city. Revenue on a trailing twelve-month basis is ₹148 crore.

Is Benares Hotels listed on the NSE or only on the BSE?

It is a BSE-only listing under scrip code 509438, with no NSE line. All figures here are Screener.in readings fixed to the 10 September 2026 cut-off, for the reason set out at the top of this page. A single-exchange listing also means a smaller pool of quoted liquidity than a dual-listed stock of the same size would have, and with roughly 13 lakh shares in issue and no institutional holder of any size, that is a practical constraint on how large a position can be entered or exited without moving the price.

Who are the promoters of Benares Hotels?

The Indian Hotels Company Limited is the ultimate holding company, and promoter holding stands at 62.58%. Foreign and domestic institutions together hold 0.07%, so the remaining 37.35% public float is almost entirely non-institutional. The parent relationship is what gives a three-hotel company access to the Taj and Ginger brands.

How has the Benares Hotels share price performed historically?

Over the ten-year window price compounded faster than profit, so a large part of the return came from the rating expanding rather than from earnings alone. Over five years the order reverses, because the profit figure starts in the pandemic trough and the price figure does not, so that pair says more about FY21 than about the business. The last twelve months are the break in the pattern: a modest price gain against flat EPS, with the stock a little under its 52-week high. The full CAGR series is in the price-behaviour table above.

Related research

• IRCTC share price target
• How to value a stock
• P/E ratio formula
• Return on equity (ROE)
• Debt-to-equity ratio

Sources and methodology

• Benares Hotels on Screener.in
• Benares Hotels Limited corporate website
• Benares Hotels Limited annual reports
• Benares Hotels Limited quarterly financial results

All figures in this article were captured on 10 September 2026. Price, the 52-week range, market capitalisation, book value, TTM EPS, the P/E, PEG, EV/EBITDA, price-to-book, debt-to-equity, ROCE, ROE, the shareholding pattern, the annual sales, margin, profit, EPS and payout series, the balance-sheet lines and the compound growth rates all come from Screener.in. Yahoo Finance carried no usable data for this BSE-only code, which is why the live quote is suppressed rather than displayed. One vintage comparison, the 5 August 2026 market capitalisation of ₹1,322 crore, comes from an earlier Gale universe snapshot that is itself Screener-derived. The off-high reading carried in that same snapshot cannot be reconciled with the market capitalisation beside it, so it is reported but no price move is measured from it. The company website was used to confirm corporate identity and the existence of the filing archive, not as a source of figures.

Analytical judgment begins at the valuation framework. The choice of exit multiples, the growth rates, the decision to anchor on three-year rather than five-year CAGRs, the reading of the FY25-to-FY26 asset increase, and the assessment of concentration, float and margin durability are ours. No quarterly results section appears in this article because no quarterly data was available in the source set at the cut-off.

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This article is research and education, not personalised investment advice or a recommendation to transact. Gale is not a SEBI-registered investment adviser. The scenarios are illustrations, not guarantees. Verify current exchange filings, liquidity, corporate actions and suitability, and consult a registered adviser before acting.