ITCHOTELS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| 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 |
📉 Chart & Trend: ITC Hotels is trading at ₹158, well below its 50 DMA (₹177) and 200 DMA (₹196), confirming a bearish bias.
📊 RSI: At 36.5, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -7.47, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and risk of further downside if support breaks.
📊 Volume Trends: Current volume (1.20 Cr) is higher than the 1-week average (0.77 Cr), showing increased participation, likely on the sell side.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹146–₹158 support is crucial; a breakout above ₹165–₹170 could trigger recovery.
🎯 Entry Zone: ₹146–₹158 (support zone, cautious entry).
🎯 Exit Zone: ₹175–₹190 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and oversold signals.
Positive
- Quarterly PAT improved to ₹286 Cr from ₹152 Cr (+25.4%).
- EPS at ₹3.90 shows earnings growth.
- DII holdings increased (+0.92%), showing domestic institutional support.
- Debt-to-equity ratio at 0.01 indicates a nearly debt-free balance sheet.
Limitation
- P/E of 38.7 is expensive compared to industry PE of 28.4.
- ROE at 7.04% and ROCE at 9.74% are modest.
- No dividend yield, limiting investor income support.
- Price trading well below both DMA 50 and DMA 200.
Company Negative News
- FII holdings decreased sharply (-9.39%).
- Stock under pressure technically with bearish signals.
- Valuations are stretched relative to industry peers.
Company Positive News
- Strong quarterly profit growth (+25.4%).
- DII inflows show confidence in the company.
- Debt-free balance sheet strengthens financial stability.
Industry
- Industry PE at 28.4 is lower than ITC Hotels’ P/E of 38.7, showing premium valuations.
- Hospitality sector is cyclical, with demand tied to tourism, corporate travel, and discretionary spending.
Conclusion
⚠️ ITC Hotels is in a bearish trend with weak technical indicators. While profit growth and debt-free status are positives, declining FII interest and stretched valuations limit attractiveness. Short-term traders may consider entry near ₹146–₹158 with strict stop-loss, targeting ₹175–₹190. Long-term investors should wait for earnings consistency and trend reversal before accumulating.
Selva, since you’re benchmarking hospitality plays, I can prepare a peer overlay with EIH, Chalet Hotels, and Lemon Tree to compare ITC Hotels’ momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?