⚠ 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.
INDHOTEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | INDHOTEL | Market Cap | 91,088 Cr. | Current Price | 639 ₹ | High / Low | 859 ₹ |
| Stock P/E | 57.1 | Book Value | 80.5 ₹ | Dividend Yield | 0.35 % | ROCE | 16.6 % |
| ROE | 13.1 % | Face Value | 1.00 ₹ | DMA 50 | 667 ₹ | DMA 200 | 712 ₹ |
| Chg in FII Hold | -1.05 % | Chg in DII Hold | 1.26 % | PAT Qtr | 570 Cr. | PAT Prev Qtr | 289 Cr. |
| RSI | 44.6 | MACD | -16.6 | Volume | 24,48,961 | Avg Vol 1Wk | 32,17,340 |
| Low price | 595 ₹ | High price | 859 ₹ | PEG Ratio | 0.17 | Debt to equity | 0.10 |
| 52w Index | 16.7 % | Qtr Profit Var | 21.6 % | EPS | 13.6 ₹ | Industry PE | 28.4 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹289 Cr. to ₹570 Cr. (QoQ), showing strong earnings growth.
- Margins: ROE at 13.1% and ROCE at 16.6% are decent, reflecting moderate profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.10 indicates very low leverage, a positive for financial stability.
- Cash Flow: EPS of ₹13.6 is modest relative to price, limiting earnings strength.
💹 Valuation Metrics
- P/E Ratio: 57.1 vs Industry PE of 28.4 → significantly overvalued compared to peers.
- P/B Ratio: Price ₹639 vs Book Value ₹80.5 → trading at a steep premium.
- PEG Ratio: 0.17 → suggests strong growth potential relative to valuation.
- Intrinsic Value: Fundamentals are solid, but current valuation is stretched; growth must sustain to justify multiples.
🏢 Business Model & Competitive Advantage
- Indian Hotels Company Limited (IHCL) operates luxury and premium hotels under the Taj brand.
- Competitive advantage lies in brand strength, heritage, and diversified hospitality offerings across India and globally.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹600–640 range looks safer given overvaluation and technical weakness.
- Long-Term Holding: Suitable for investors seeking exposure to hospitality growth. Strong brand and low debt support long-term resilience.
✅ Positive
- Strong quarterly PAT growth (₹570 Cr. vs ₹289 Cr.).
- Low debt-to-equity ratio (0.10).
- PEG ratio (0.17) indicates attractive growth potential.
- DII holdings increased (+1.26%), showing domestic institutional support.
⚠️ Limitation
- High P/E ratio (57.1) compared to industry average.
- EPS of ₹13.6 is modest relative to price.
- Stock trading below DMA 50 & DMA 200, indicating bearish technical trend.
📉 Company Negative News
- FII holdings decreased (-1.05%), showing reduced foreign investor confidence.
- Stock corrected from high of ₹859 to current ₹639.
📈 Company Positive News
- Quarterly PAT growth of 21.6% shows strong momentum.
- DII inflows reflect rising domestic confidence.
🏦 Industry
- Industry PE at 28.4 highlights sector trades at lower multiples than Indian Hotels.
- Hospitality sector growth supported by tourism recovery, premium hotel demand, and rising disposable incomes.
🔎 Conclusion
- Indian Hotels is fundamentally strong with low debt and solid profitability but trades at a premium valuation.
- Entry around ₹600–640 is favorable for long-term investors.
- Strong long-term holding potential given brand strength and hospitality sector growth, but monitor valuation risks and institutional flows.