⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CHALET - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | CHALET | Market Cap | 16,300 Cr. | Current Price | 745 ₹ | High / Low | 1,082 ₹ |
| Stock P/E | 25.8 | Book Value | 158 ₹ | Dividend Yield | 0.13 % | ROCE | 11.9 % |
| ROE | 6.88 % | Face Value | 10.0 ₹ | DMA 50 | 821 ₹ | DMA 200 | 872 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.59 % | PAT Qtr | 127 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 39.8 | MACD | -31.9 | Volume | 2,70,854 | Avg Vol 1Wk | 1,40,264 |
| Low price | 702 ₹ | High price | 1,082 ₹ | PEG Ratio | 0.42 | Debt to equity | 0.64 |
| 52w Index | 11.3 % | Qtr Profit Var | 24.9 % | EPS | 28.9 ₹ | Industry PE | 28.4 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 168 Cr. to 127 Cr., showing short-term weakness. EPS at 28.9 ₹ is modest relative to valuation.
- Margins & Returns: ROE at 6.88% and ROCE at 11.9% are moderate, reflecting average efficiency.
- Debt Profile: Debt-to-equity ratio of 0.64 indicates manageable leverage.
- Cash Flow: Dividend yield at 0.13% is minimal, highlighting limited shareholder returns despite profitability.
💹 Valuation Indicators
- P/E Ratio: 25.8 vs Industry PE of 28.4 → slightly undervalued relative to peers.
- P/B Ratio: Current Price 745 ₹ vs Book Value 158 ₹ → P/B ~4.7, reflecting premium valuation.
- PEG Ratio: 0.42 → suggests attractive valuation relative to growth prospects.
- Intrinsic Value: Moderately undervalued compared to industry benchmarks, offering entry potential.
🏢 Business Model & Competitive Advantage
- Chalet Hotels operates in hospitality and real estate, with premium hotels and commercial spaces.
- Competitive advantage lies in strong brand partnerships and presence in high-demand urban markets.
- Moderate leverage and diversified portfolio provide resilience, though profitability is cyclical.
📈 Technical & Entry Zone
- Stock trading at 745 ₹, below 50 DMA (821 ₹) and 200 DMA (872 ₹).
- RSI at 39.8 indicates oversold territory; MACD negative suggests short-term weakness.
- Entry Zone: Attractive between 720–740 ₹ for cautious accumulation, with long-term holding potential.
✅ Positive
- PEG ratio of 0.42 indicates undervaluation relative to growth.
- Strong presence in hospitality and real estate markets.
- Increase in DII holdings (+0.59%) signals domestic institutional confidence.
⚠️ Limitation
- ROE (6.88%) and ROCE (11.9%) are modest compared to industry leaders.
- Dividend yield at 0.13% is very low.
- Quarterly PAT decline from 168 Cr. to 127 Cr. shows short-term weakness.
📉 Company Negative News
- No major recent negative news, but decline in quarterly profits and reduced FII holdings (-0.65%) reflect cautious sentiment.
📈 Company Positive News
- Increase in DII holdings (+0.59%) shows confidence from domestic institutions.
- Strong brand partnerships and diversified portfolio support long-term growth.
🏭 Industry
- Hospitality and real estate sector benefits from urbanization and rising travel demand.
- Industry PE at 28.4 indicates moderate valuations with growth potential.
- Competition from global and domestic hotel chains remains a challenge.
🔮 Conclusion
- CHALET shows moderate fundamentals with undervaluation relative to peers and strong industry presence.
- Profitability is cyclical, and efficiency metrics are average, but long-term prospects remain positive.
- Recommendation: Accumulate in the 720–740 ₹ range for long-term holding, focusing on hospitality sector recovery and real estate demand.