CHALET - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | CHALET | Market Cap | 18,744 Cr. | Current Price | 856 ₹ | High / Low | 1,082 ₹ |
| Stock P/E | 30.9 | Book Value | 158 ₹ | Dividend Yield | 0.12 % | ROCE | 11.9 % |
| ROE | 6.88 % | Face Value | 10.0 ₹ | DMA 50 | 875 ₹ | DMA 200 | 894 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.59 % | PAT Qtr | 168 Cr. | PAT Prev Qtr | 205 Cr. |
| RSI | 48.5 | MACD | -10.0 | Volume | 24,208 | Avg Vol 1Wk | 76,701 |
| Low price | 634 ₹ | High price | 1,082 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.64 |
| 52w Index | 49.6 % | Qtr Profit Var | 228 % | EPS | 27.8 ₹ | Industry PE | 32.6 |
📊 Financials: Chalet Hotels Ltd. has shown strong year-on-year profit growth with PAT at 168 Cr compared to 205 Cr previously, though sequentially profits declined. ROE at 6.88% and ROCE at 11.9% indicate modest efficiency. Debt-to-equity ratio of 0.64 reflects moderate leverage, manageable for the hospitality sector. EPS of 27.8 ₹ supports earnings visibility, while quarterly profit variation of 228% highlights strong recovery momentum post-pandemic cycles.
💹 Valuation: Current P/E of 30.9 is slightly below the industry average (32.6), suggesting fair valuation. P/B ratio ~5.42 (Price 856 ₹ / Book Value 158 ₹) is expensive relative to book value. PEG ratio of 0.50 indicates attractive valuation relative to growth. Dividend yield of 0.12% is negligible, offering limited income support.
🏢 Business Model: Chalet Hotels operates premium hospitality assets including hotels and commercial spaces. Competitive advantage lies in strong brand partnerships with global chains, prime locations, and diversified revenue streams from hospitality and real estate. The company benefits from rising tourism and corporate travel demand.
📈 Entry Zone: Attractive accumulation zone between 820–850 ₹, near DMA200 (894 ₹). RSI at 48.5 indicates neutral momentum, while MACD (-10.0) suggests mild bearishness. Long-term investors can accumulate gradually at lower levels.
🔒 Holding Guidance: Fundamentally stable with strong recovery momentum and fair valuation. Suitable for long-term holding, though investors should monitor debt levels and cyclical demand in hospitality.
Positive
- Strong year-on-year profit growth (228%).
- EPS of 27.8 ₹ supports earnings visibility.
- PEG ratio of 0.50 highlights attractive growth-adjusted valuation.
- DII holdings increased (+0.59%), reflecting domestic confidence.
Limitation
- ROE (6.88%) and ROCE (11.9%) are modest compared to peers.
- P/B ratio of 5.42 indicates expensive valuation relative to book value.
- Dividend yield of 0.12% offers negligible income support.
- Sequential PAT decline (168 Cr vs 205 Cr) shows short-term weakness.
- FII holdings decreased (-0.65%), showing cautious foreign sentiment.
Company Negative News
- No major negative news reported, but sequential profit decline and reduced FII holdings raise caution.
Company Positive News
- Strong recovery momentum with significant year-on-year profit growth.
- Strategic partnerships with global hospitality brands.
- Improved domestic institutional confidence with DII increase.
Industry
- Hospitality sector benefits from rising tourism and corporate travel demand.
- Industry P/E at 32.6 suggests optimism in the sector.
- Recovery post-pandemic supports long-term growth potential.
Conclusion
✅ Chalet Hotels Ltd. is financially stable with strong recovery momentum and fair valuation relative to peers. Despite modest efficiency metrics and limited dividend yield, its strategic positioning in premium hospitality makes it a promising long-term investment. Accumulation near 820–850 ₹ is recommended for patient investors.
I can also extend this with a peer comparison against EIH, Indian Hotels, and Lemon Tree Hotels to highlight Chalet’s relative valuation and efficiency. Would you like me to add that?