CHALET - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.7
| Stock Code | CHALET | Market Cap | 19,047 Cr. | Current Price | 871 ₹ | High / Low | 1,082 ₹ |
| Stock P/E | 30.1 | Book Value | 158 ₹ | Dividend Yield | 0.11 % | ROCE | 11.9 % |
| ROE | 6.88 % | Face Value | 10.0 ₹ | DMA 50 | 875 ₹ | DMA 200 | 893 ₹ |
| Chg in FII Hold | -0.65 % | Chg in DII Hold | 0.59 % | PAT Qtr | 127 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 52.1 | MACD | -3.21 | Volume | 1,46,376 | Avg Vol 1Wk | 1,41,861 |
| Low price | 634 ₹ | High price | 1,082 ₹ | PEG Ratio | 0.49 | Debt to equity | 0.64 |
| 52w Index | 52.9 % | Qtr Profit Var | 24.9 % | EPS | 28.9 ₹ | Industry PE | 31.0 |
📊 Analysis: CHALET trades at a P/E of 30.1, in line with the industry average of 31, suggesting fair valuation. ROE (6.88%) and ROCE (11.9%) are modest, reflecting average efficiency. EPS of 28.9 ₹ supports profitability, while PEG ratio of 0.49 indicates undervaluation relative to growth. Dividend yield of 0.11% is negligible. Debt-to-equity at 0.64 is manageable but requires monitoring. Technicals show price near DMA 50 (875 ₹) and DMA 200 (893 ₹), with RSI at 52.1 suggesting neutral momentum and MACD (-3.21) signaling mild bearishness. Quarterly PAT declined (127 Cr. vs 168 Cr.), though YoY profit variation (+24.9%) is positive. Institutional activity is mixed, with FII holdings reduced (-0.65%) and DII holdings increased (+0.59%).
💰 Ideal Entry Zone: Between 840 ₹ – 860 ₹ (near support levels and valuation comfort). Current price (871 ₹) is slightly above ideal entry, so staggered accumulation is recommended.
📈 Exit / Holding Strategy: For long-term investors already holding, maintain positions cautiously given PEG ratio and profit growth. Exit if price sustains below 820 ₹ or if ROE/ROCE fail to improve. Holding period: 2–3 years, with periodic review of profitability and sector demand cycles.
Positive
- PEG ratio of 0.49 indicates undervaluation relative to growth
- EPS of 28.9 ₹ supports profitability
- Debt-to-equity ratio of 0.64 is manageable
- DII holdings increased (+0.59%), showing domestic confidence
- YoY profit variation (+24.9%) supports growth outlook
Limitation
- ROE (6.88%) and ROCE (11.9%) are modest
- Dividend yield of 0.11% is negligible
- Quarterly PAT declined (127 Cr. vs 168 Cr.)
- MACD (-3.21) signals weak short-term momentum
Company Negative News
- FII holdings reduced (-0.65%), showing foreign caution
- Quarterly PAT decline raises short-term concerns
Company Positive News
- DII holdings increased (+0.59%), reflecting domestic support
- YoY profit variation (+24.9%) shows growth momentum
Industry
- Industry P/E at 31 shows CHALET trades at fair valuation
- Hospitality sector supported by tourism recovery and rising demand
Conclusion
⚖️ CHALET is a moderately valued hospitality stock with fair fundamentals and growth potential, but faces earnings pressure and weak efficiency metrics. Ideal entry is near 840–860 ₹. Long-term holders should maintain positions for 2–3 years, monitoring profitability, ROE/ROCE, and sector demand trends.