⚠ 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.
ITCHOTELS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ITCHOTELS | Market Cap | 32,975 Cr. | Current Price | 158 ₹ | High / Low | 262 ₹ |
| Stock P/E | 38.7 | Book Value | 54.6 ₹ | Dividend Yield | 0.00 % | ROCE | 9.74 % |
| ROE | 7.04 % | Face Value | 1.00 ₹ | DMA 50 | 177 ₹ | DMA 200 | 196 ₹ |
| Chg in FII Hold | -9.39 % | Chg in DII Hold | 0.92 % | PAT Qtr | 286 Cr. | PAT Prev Qtr | 152 Cr. |
| RSI | 36.5 | MACD | -7.47 | Volume | 1,20,59,816 | Avg Vol 1Wk | 77,68,058 |
| Low price | 146 ₹ | High price | 262 ₹ | Debt to equity | 0.01 | 52w Index | 10.5 % |
| Qtr Profit Var | 25.4 % | EPS | 3.90 ₹ | Industry PE | 28.4 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹152 Cr. to ₹286 Cr. (QoQ), showing strong earnings growth.
- Margins: ROE at 7.04% and ROCE at 9.74% are modest, reflecting average profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.01 indicates a nearly debt-free balance sheet.
- Cash Flow: EPS of ₹3.90 is relatively low compared to price, limiting earnings strength.
💹 Valuation Metrics
- P/E Ratio: 38.7 vs Industry PE of 28.4 → trading at a premium compared to peers.
- P/B Ratio: Price ₹158 vs Book Value ₹54.6 → trading at a steep premium.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Current valuation looks stretched; fundamentals do not fully justify premium multiples.
🏢 Business Model & Competitive Advantage
- ITC Hotels operates in hospitality and luxury hotel services under ITC Ltd.
- Competitive advantage lies in brand strength and premium positioning, but profitability metrics remain modest.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹145–160 range looks safer given valuation and technical weakness.
- Long-Term Holding: Suitable for investors seeking exposure to hospitality growth. Monitor profitability consistency and valuation risks.
✅ Positive
- Strong quarterly PAT growth (₹286 Cr. vs ₹152 Cr.).
- Debt-free balance sheet (Debt-to-equity 0.01).
- DII holdings increased (+0.92%), showing domestic institutional support.
⚠️ Limitation
- High P/E ratio (38.7) compared to industry average.
- Low ROE (7.04%) and ROCE (9.74%).
- EPS of ₹3.90 is modest relative to price.
📉 Company Negative News
- FII holdings decreased significantly (-9.39%).
- Stock trading below DMA 50 & DMA 200, indicating bearish momentum.
📈 Company Positive News
- Quarterly PAT growth of 25.4% shows strong momentum.
- DII inflows reflect rising domestic confidence.
🏦 Industry
- Industry PE at 28.4 highlights sector trades at lower multiples than ITC Hotels.
- Hospitality sector growth supported by tourism recovery and premium hotel demand.
🔎 Conclusion
- ITC Hotels shows strong profit growth but remains overvalued with modest ROE and ROCE.
- Entry around ₹145–160 is safer for long-term investors.
- Hold for exposure to hospitality growth, but monitor profitability consistency and valuation risks.