INDHOTEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | INDHOTEL | Market Cap | 91,088 Cr. | Current Price | 639 ₹ | High / Low | 859 ₹ |
| Stock P/E | 57.1 | Book Value | 80.5 ₹ | Dividend Yield | 0.35 % | ROCE | 16.6 % |
| ROE | 13.1 % | Face Value | 1.00 ₹ | DMA 50 | 667 ₹ | DMA 200 | 712 ₹ |
| Chg in FII Hold | -1.05 % | Chg in DII Hold | 1.26 % | PAT Qtr | 570 Cr. | PAT Prev Qtr | 289 Cr. |
| RSI | 44.6 | MACD | -16.6 | Volume | 24,48,961 | Avg Vol 1Wk | 32,17,340 |
| Low price | 595 ₹ | High price | 859 ₹ | PEG Ratio | 0.17 | Debt to equity | 0.10 |
| 52w Index | 16.7 % | Qtr Profit Var | 21.6 % | EPS | 13.6 ₹ | Industry PE | 28.4 |
📉 Chart & Trend: Indian Hotels is trading at ₹639, below both its 50 DMA (₹667) and 200 DMA (₹712), confirming a bearish bias in the short term.
📊 RSI: At 44.6, RSI is neutral-to-weak, showing mild selling pressure.
📉 MACD: Negative at -16.6, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and potential for a rebound if support holds.
📊 Volume Trends: Current volume (24.4 lakh) is below the 1-week average (32.1 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is weak. Sustaining above ₹630–₹640 support is crucial; a breakout above ₹660–₹670 could trigger recovery.
🎯 Entry Zone: ₹630–₹640 (support zone, cautious entry).
🎯 Exit Zone: ₹690–₹710 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is consolidating with weak momentum and bearish undertones.
Positive
- Strong ROCE (16.6%) and ROE (13.1%) highlight efficiency.
- Quarterly PAT surged to ₹570 Cr from ₹289 Cr (+21.6%).
- EPS at ₹13.6 supports valuations.
- DII holdings increased (+1.26%), showing domestic institutional confidence.
- PEG ratio at 0.17 suggests undervaluation relative to growth.
- Debt-to-equity ratio at 0.10 indicates low leverage.
Limitation
- P/E of 57.1 is expensive compared to industry PE of 28.4.
- Dividend yield is modest at 0.35%, limiting income support.
- Price trading below both DMA 50 and DMA 200.
- Weak technical momentum with bearish MACD.
Company Negative News
- FII holdings decreased (-1.05%).
- Stock under pressure technically with bearish signals.
- Premium valuations may limit upside.
Company Positive News
- Strong quarterly profit growth (+21.6%).
- DII inflows (+1.26%) show confidence in the company.
- Low debt levels provide financial stability.
Industry
- Industry PE at 28.4 is much lower than Indian Hotels’ P/E of 57.1, showing premium valuations.
- Hospitality sector is cyclical, driven by tourism, corporate travel, and discretionary spending.
Conclusion
⚠️ Indian Hotels is in a consolidation phase with weak technical indicators. While fundamentals are strong with profit growth, low debt, and efficiency ratios, premium valuations and declining FII interest limit short-term attractiveness. Short-term traders may consider entry near ₹630–₹640 with strict stop-loss, targeting ₹690–₹710. Long-term investors can accumulate gradually, given strong fundamentals and sectoral tailwinds.
Selva, since you’re benchmarking hospitality plays, I can prepare a peer overlay with EIH, Chalet Hotels, and Lemon Tree to compare Indian Hotels’ momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?