CHALET - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CHALET | Market Cap | 16,593 Cr. | Current Price | 758 ₹ | High / Low | 1,082 ₹ |
| Stock P/E | 26.2 | Book Value | 158 ₹ | Dividend Yield | 0.13 % | ROCE | 11.9 % |
| ROE | 6.88 % | Face Value | 10.0 ₹ | DMA 50 | 784 ₹ | DMA 200 | 845 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.58 % | PAT Qtr | 127 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 45.3 | MACD | 4.47 | Volume | 82,452 | Avg Vol 1Wk | 1,09,917 |
| Low price | 690 ₹ | High price | 1,082 ₹ | PEG Ratio | 0.43 | Debt to equity | 0.64 |
| 52w Index | 17.3 % | Qtr Profit Var | 24.9 % | EPS | 28.9 ₹ | Industry PE | 28.8 |
📊 Financials: CHALET shows modest fundamentals with ROE at 6.88% and ROCE at 11.9%, reflecting limited efficiency. EPS of ₹28.9 supports earnings visibility, but quarterly PAT declined from ₹168 Cr. to ₹127 Cr. (-24.9%). Debt-to-equity at 0.64 remains manageable, providing balance sheet stability.
💹 Valuation: The stock trades at a P/E of 26.2, slightly below the industry average of 28.8, suggesting fair valuation. Book value of ₹158 gives a P/B of ~4.8, relatively high for the sector. PEG ratio of 0.43 indicates undervaluation relative to growth, offering long-term potential. Intrinsic value appears close to current price, supporting cautious accumulation.
🏢 Business Model: CHALET operates in hospitality and real estate, benefiting from rising tourism and infrastructure development. Its competitive advantage lies in brand positioning and diversified hospitality assets. Institutional sentiment is mixed, with FII holdings down (-0.37%) but DII holdings up (+0.58%).
🎯 Entry Zone: Attractive entry between ₹720–740, near support levels and below DMA averages. Long-term investors may hold for 2–4 years, with exit considerations if ROE falls below 6% or earnings continue to decline.
Positive
- PEG ratio of 0.43 indicates undervaluation relative to growth.
- Debt-to-equity ratio of 0.64 is manageable.
- DII holdings increased (+0.58%), reflecting domestic confidence.
- EPS of ₹28.9 supports earnings visibility.
Limitation
- ROE (6.88%) and ROCE (11.9%) are modest.
- Quarterly PAT declined significantly (-24.9%).
- Dividend yield very low at 0.13%.
- FII holdings decreased (-0.37%), showing reduced foreign interest.
- Trading volume below weekly average, showing weaker participation.
Company Negative News
- Recent quarterly profit decline and reduced FII interest indicate cautious sentiment.
Company Positive News
- Improved DII holdings (+0.58%) show domestic institutional support.
- PEG ratio highlights undervaluation relative to growth potential.
Industry
- Hospitality and real estate sector benefits from rising tourism and infrastructure development.
- Industry PE at 28.8 suggests CHALET trades at fair valuation relative to peers.
Conclusion
✅ CHALET is a moderately strong company with manageable debt and fair valuations. Entry near ₹720–740 offers safety, while holding for 2–4 years could yield moderate returns if earnings growth sustains and institutional confidence stabilizes. Monitoring profitability and ROE is essential for long-term investors.