CHALET - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Chalet Hotels Ltd (CHALET) Fundamental Rating: 3.5

🧾 Core Financials

Earnings Performance

PAT jumped from ₹96.5 Cr to ₹124 Cr ➜ QoQ growth of 50.2% — impressive momentum.

EPS of ₹6.53 looks low, especially given the price tag of ₹900 ₹.

Return Metrics

ROE: 5.77%, ROCE: 11.1% ➜ subpar returns, could be due to high fixed assets and operational leverage.

Leverage & Liquidity

Debt-to-equity: 0.85 ➜ moderately leveraged, typical for hotel infra-driven business.

Dividend Yield: 0.00% ➜ no income stream—focused on reinvestment.

📈 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 139 Extremely high — rich premium on earnings

P/B Ratio ~6.47 (900 ₹ / 139 ₹) ➜ pricey relative to assets

PEG Ratio 2.47 Overvalued even considering growth

Industry PE 37.4 Stock trades at nearly 4x industry PE

🔍 Conclusion: Strong performance but valuation appears stretched. Investors likely pricing future growth and asset value.

🏨 Business Model & Moat

Operates premium hotels in urban business hubs — includes luxury brands under Marriott.

Asset-heavy model ➜ high entry barriers but capital intensive.

Competitive edge in location and luxury positioning — though margins subject to seasonality and economic cycles.

Institutional interest

FII: +0.06%, DII: -0.01% ➜ neutral to lukewarm.

📉 Technical Insights

RSI: 48.7 ➜ neutral zone—no clear strength or weakness.

MACD: +6.17 ➜ bullish crossover—positive short-term signal.

Price hovering near 50 DMA (₹894) and 200 DMA (₹854) ➜ consolidation phase.

✅ Suggested Entry Zone: ₹820–₹860 ⚠️ Accumulate slowly, especially if there's a pullback due to valuation compression.

📅 Long-Term Outlook

Hold if

You believe in India's hospitality sector growth post-COVID, driven by travel and business resurgence.

You're investing with a multi-year horizon and are okay with valuation premium.

You expect consistent occupancy growth and margin expansion from asset sweating.

💡 Chalet could be a play on luxury hospitality and real estate monetization, but enter with valuation caution.

Want to explore this against Lemon Tree Hotels or Indian Hotels? I can line up a full competitive map with operational and financial metrics. Just say the word.

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