CHALET - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.8

📈 Positive

• 📊 Quarterly PAT surged 207% to ₹205 Cr., indicating strong operational performance.
• 📈 EPS of ₹14.2 shows improving profitability and earnings visibility.
• 📈 FII holding increased by 0.44%, reflecting growing foreign investor confidence.
• 📉 Trading above DMA200 (₹908), suggesting medium-term bullish sentiment.

⚠️ Limitation

• 📉 High P/E of 67.4 vs industry average of 35.4, indicating premium valuation.
• 📉 Low ROE (6.88%) and ROCE (11.9%) suggest modest capital efficiency.
• 📉 Debt-to-equity ratio of 0.76 is relatively high for a service-oriented business.
• 📉 MACD at -8.87 and RSI at 51.4 reflect weak short-term momentum.

📰 Company Negative News

• 📉 DII holding declined by 0.52%, indicating reduced domestic institutional interest.
• 📉 Dividend yield is 0.00%, offering no passive income for investors.

🌟 Company Positive News

• 📈 Strong quarterly profit growth and improving EPS signal operational turnaround.
• 📈 Volume nearing 1-week average suggests stable investor interest.

🏨 Industry

• 🏨 CHALET operates in the hospitality sector, benefiting from post-pandemic travel recovery and premium hotel demand.
• 📊 Industry P/E of 35.4 reflects moderate growth expectations and cyclical sensitivity to tourism trends.

🧭 Conclusion

• 📌 Suggested entry zone: ₹900–₹930, near DMA200 for better risk-reward balance.
• 🕰️ Long-term holding viable for investors betting on hospitality rebound and earnings expansion.
• ⚖️ Monitor debt levels and valuation as key factors for sustained upside.