⚠ 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: 3.8
| Stock Code | INDHOTEL | Market Cap | 94,510 Cr. | Current Price | 664 ₹ | High / Low | 859 ₹ |
| Stock P/E | 63.3 | Book Value | 80.5 ₹ | Dividend Yield | 0.34 % | ROCE | 16.6 % |
| ROE | 13.1 % | Face Value | 1.00 ₹ | DMA 50 | 702 ₹ | DMA 200 | 731 ₹ |
| Chg in FII Hold | -1.05 % | Chg in DII Hold | 1.26 % | PAT Qtr | 289 Cr. | PAT Prev Qtr | 245 Cr. |
| RSI | 40.2 | MACD | -17.0 | Volume | 18,23,841 | Avg Vol 1Wk | 39,65,094 |
| Low price | 627 ₹ | High price | 859 ₹ | PEG Ratio | 0.19 | Debt to equity | 0.10 |
| 52w Index | 16.2 % | Qtr Profit Var | 12.5 % | EPS | 10.4 ₹ | Industry PE | 32.6 |
📊 Core Financials
- Revenue & Profitability: PAT improved from 245 Cr. to 289 Cr. QoQ (+12.5%), showing steady earnings growth.
- Margins: ROE at 13.1% and ROCE at 16.6% are moderate, reflecting decent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.10 indicates very low leverage, ensuring financial stability.
- Cash Flow: Dividend yield of 0.34% is minimal, suggesting reinvestment focus rather than shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: 63.3 vs Industry PE of 32.6 → significantly overvalued compared to peers.
- P/B Ratio: Current Price (664 ₹) / Book Value (80.5 ₹) ≈ 8.24, expensive relative to book value.
- PEG Ratio: 0.19 indicates attractive valuation relative to growth, despite high P/E.
- Intrinsic Value: Current price near support (627 ₹) suggests limited downside, but valuation multiples remain stretched.
🏦 Business Model & Competitive Advantage
- Indian Hotels Company Limited (IHCL) operates in hospitality, focusing on premium and luxury segments under the Taj brand.
- Competitive advantage lies in strong brand recognition, diversified portfolio, and low debt structure.
- Overall health is stable, with consistent profitability, but valuations are high relative to industry averages.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 630 ₹ – 650 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking hospitality exposure, but caution advised due to high valuation multiples.
✅ Positive
- Low debt-to-equity ratio (0.10) ensures financial stability.
- Strong brand presence in premium hospitality sector.
- Quarterly PAT growth (+12.5%) shows operational strength.
⚠️ Limitation
- High P/E (63.3) compared to industry average (32.6).
- P/B ratio (8.24) indicates expensive valuation relative to book value.
- Dividend yield of 0.34% offers limited shareholder reward.
📉 Company Negative News
- FII holdings decreased (-1.05%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 (702 ₹) and DMA 200 (731 ₹) indicates bearish technicals.
📈 Company Positive News
- DII holdings increased (+1.26%), reflecting strong domestic institutional support.
- PAT improved QoQ, showing consistent earnings growth.
🏭 Industry
- Industry PE at 32.6 is much lower than INDHOTEL’s PE, highlighting overpricing.
- Hospitality sector growth driven by tourism recovery and premium demand.
- Competition from other hotel chains remains strong, but IHCL benefits from brand strength.
🔎 Conclusion
- Indian Hotels shows strong fundamentals with low debt and steady profit growth.
- Valuation is stretched compared to industry peers, limiting upside potential.
- Best suited for long-term investors entering near 630–650 ₹, with monitoring of profitability and institutional investor trends.
I can also prepare a comparative HTML report of Indian Hotels versus peers like EIH and ITC Hotels to highlight relative valuation and growth prospects.