INDHOTEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| 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 |
📊 Chart Patterns & Trend: Indian Hotels is consolidating near the 664 ₹ zone. Price is trading below both the 50 DMA (702 ₹) and 200 DMA (731 ₹), indicating short-term weakness and medium-term resistance. Support is visible near 627–640 ₹, while resistance lies around 700–720 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 705–710 ₹ would confirm bullish momentum.
📉 RSI: At 40.2, RSI is weak, suggesting bearish momentum and limited buying strength.
📉 MACD: Negative (-17.0), showing bearish crossover and short-term weakness.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 690–700 ₹ is possible if support holds.
📊 Volume Trends: Current volume (18.2 lakh) is lower than average weekly volume (39.6 lakh), showing reduced participation and lack of strong buying support.
🎯 Entry Zone: 640–665 ₹ (support zone).
🎯 Exit Zone: 700–720 ₹ (resistance zone).
🔑 Stop Loss: 625 ₹ (below recent support).
Positive
- ROCE at 16.6% and ROE at 13.1% show decent efficiency.
- Debt-to-equity ratio at 0.10 indicates strong financial stability.
- EPS at 10.4 ₹ supports valuation strength.
- DII holdings increased (+1.26%), showing domestic institutional support.
- Quarterly PAT improved from 245 Cr. to 289 Cr. (12.5% growth).
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- Stock P/E at 63.3 is much higher than industry PE (32.6), suggesting overvaluation.
- Dividend yield at 0.34% is low, reducing income attractiveness.
- Weak volume participation limits momentum strength.
Company Negative News
- FII holdings decreased (-1.05%), reflecting reduced foreign investor confidence.
- Stock corrected from 859 ₹ to 664 ₹, showing investor caution.
Company Positive News
- Quarterly PAT growth highlights operational improvement.
- DII inflows (+1.26%) show domestic institutional confidence.
- Strong fundamentals with low debt and decent efficiency ratios.
Industry
- Industry PE at 32.6 vs. stock PE at 63.3 highlights premium valuation.
- Hospitality sector supported by tourism recovery, rising consumer spending, and government initiatives.
Conclusion
⚖️ Indian Hotels is in a consolidation phase with bearish signals (MACD negative, RSI weak). Short-term bounce is possible from 640–665 ₹, but resistance near 700–720 ₹ limits upside. Medium-term outlook remains cautious due to high valuation and weak volume participation, though strong fundamentals, debt stability, and earnings growth provide resilience. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other hospitality stocks (like EIH, Chalet Hotels, and Lemon Tree Hotels) to highlight relative strength and sector rotation opportunities?