INDHOTEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Indian Hotels Company Ltd (INDHOTEL), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated recent performance trends and analyst consensus from September 2025

1

2

.

📊 Fundamental Analysis of Indian Hotels Company Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹245 Cr vs ₹491 Cr — sequential dip, but YoY growth remains strong (↑17.1%).

EPS: ₹10.2 — modest, but consistent.

ROE: 13.1%, ROCE: 16.6% — solid returns, especially for a capital-light hospitality model.

Leverage & Liquidity

Debt-to-equity: 0.10 — low leverage, excellent financial resilience.

Dividend Yield: 0.29% — modest, with scope for improvement.

Cash Flow & Stability

Strong operating performance with 32% revenue growth and 29% EBITDA rise in Q1 FY26

1

.

Management fee income up 17% YoY, driven by asset-light expansion.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 76.2 Significantly overvalued vs industry PE of 37.5

P/B Ratio ~9.9 High — reflects premium on brand and growth expectations

PEG Ratio 0.22 Attractive — growth justifies valuation

Intrinsic Value ~₹740–₹760 Slightly below current price — limited upside

🏨 Business Model & Competitive Edge

Segment Focus: Luxury (Taj), mid-scale (Ginger), upscale (Vivanta), and experiential (amã Stays & Trails).

Moat: Brand strength, diversified portfolio, and capital-light growth strategy.

Growth Drivers

Room pipeline expansion to 55,000+ rooms, with 50% on managed contracts

1

.

GST cut on rooms <₹7,500/night to 5% — boosts Ginger segment.

TajSATS and new verticals (Qmin, Tree of Life) showing 20%+ YoY growth.

📈 Technical & Entry Guidance

Current Price: ₹782

DMA 50/200: ₹769 / ₹752 — bullish trend.

RSI: 56.4 — neutral zone.

MACD: 4.85 — positive momentum.

🎯 Entry Zone

Ideal Buy Range: ₹740–₹760 — wait for minor pullback.

Stop Loss: ₹715

Target: ₹860–₹880 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, brand moat, and sector tailwinds justify long-term holding.

Buy on dips: Preferably near ₹750 zone.

Growth Triggers: Room expansion, GST benefits, and mid-scale hospitality boom.

⭐ Fundamental Rating

4.4

1

The Hindu BusinessLine

2

simplywall.st

Edit in a page