ALFA Finder
| Hotel Capacity | 26 RoomsDwarka Property |
|---|---|
| Market Cap | ₹278.63 CrSmall Cap |
| 1Yr Stock Return | 469.43%Price Growth |
| Revenue TTM | ₹33.8 CrOperating |
Key highlights
- Execution of a lease and operating agreement with Ladhu Kara Charities for the Dwarka property
- Facility capacity includes 26 guest rooms along with integrated restaurant facilities
- Lease term set for 11 months and 29 days, expiring on June 30, 2027
- Financial commitment includes a monthly rent of Rs. 3,00,000 with a 10% annual escalation
- Company paid a refundable security deposit of Rs. 50,00,000 to secure the premises
Strategic Expansion into Hospitality
Spice Islands Industries is pivoting toward a more diversified business model by expanding its presence in the hospitality sector. The opening of The Ocean Prime in Dwarka, Gujarat, positions the company to tap into high-demand religious tourism. This strategy involves taking on lease and operating fully equipped hotel properties, allowing the company to create additional revenue-generating opportunities without the capital intensity of property ownership.
The location near the Vegetable Market on Sidhanath Road serves as a primary hub for pilgrims and tourists visiting the Dwarkadhish Temple area, aligning with the company's broader expansion goals.
Operational and Lease Framework
- The project is executed through a partnership between Spice Islands Industries and Seth Ladhukara Charity Trust
- Lease includes the hotel premises alongside all existing furniture, fixtures, and equipment
- The Agreement commenced on July 1, 2026, and remains valid through June 30, 2027
- Operations are managed directly by the company in accordance with the terms of the lease agreement
- The facility integrates specialized restaurant services to supplement room-based revenue streams
Financial Performance and Valuation
The company operates within the textiles and apparel sector but has shown significant financial growth leading up to this expansion. Spice Islands Industries reported a trailing twelve-month operating revenue of Rs. 33.8 crore and a net profit of Rs.
6.73 crore. The stock has experienced a substantial price increase of 469.43% over the past year, reaching a high of 110. Currently, the stock trades at a P/E TTM of 41.41x, which compares to the broader industry P/E of 43.22x.
This expansion into the hospitality segment is expected to contribute to the company's strategy of diversifying its industrial portfolio and scaling its service-based income.
Dwarka Tourism Landscape
The choice of Dwarka for The Ocean Prime aligns with the rapid development of tourism infrastructure in Gujarat. As a prominent site for coastal and spiritual tourism, Dwarka attracts year-round footfall, supporting the viability of a 26-room boutique hotel model. The company's monthly commitment of Rs.
3 lakh in rent reflect a calculated entry into the market, supported by a 10% annual escalation clause. This move follows the company's name change from Spice Islands Apparels, signaling a shift toward a multi-category industrial and service enterprise capable of managing diverse asset classes.
| Share price | ₹89.4 |
|---|---|
| Market capitalisation | ₹278.63 Cr |
| Revenue (annual) | ₹17.89 Cr |
| Net profit (annual) | ₹5.66 Cr |
| Revenue (latest quarter) | ₹17.83 Cr+63.44% vs previous quarter |
| Net profit (latest quarter) | ₹1.40 Cr-54.72% vs previous quarter |
| P/E (TTM) | 41.41×Sector 55.71× |
| Promoter holding | 43.11%0.00% QoQ |
| FII holding | 0%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Spice Islands Industries Limited announcing the commencement of operations at The Ocean Prime hotel. Market figures from a third-party data provider.
