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Check Before You Invest : CHL Ltd

BSE: 532992 NSE: ISIN: INE790D01020
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does CHL Ltd belong to?
CHL Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is CHL Ltd a good quality company?
CHL Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is CHL Ltd undervalued or overvalued?
CHL Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 11.73 9.71
Price to Book 0.93 0.98
Price to Sales 1.83 2.21
EV to EBITDA 5.39 5.94
Q.4 Is CHL Ltd a good buy now?
CHL Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of CHL Ltd?
CHL Ltd revenue growth is 17.5% for FY-2025, which is above its 5-year CAGR of 12.39%, indicating faster growth.

Q.2 Gross Profit margin of CHL Ltd?
CHL Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.5% for FY-2025, which is above its 5-year median of 31.2%, indicating increasing margins.

Q.3 Operating Profit Margin of CHL Ltd?
CHL Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.73% for FY-2025, which is in line with its 5-year median of 31.36% indicating stable margins.

Q.4 Net Profit Margin of CHL Ltd?
CHL Ltd Net Profit Margin is 23.07% for FY-2025, is in line with its 5-year median of 22.67%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 35.5 31.2
Operating Profit Margin (%) 32.73 31.36
Net Profit Margin (%) 23.07 22.67

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of CHL Ltd?
CHL Ltd Return on Asset is 13.08%, which is in line with its 5-year historical median of 12.65%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of CHL Ltd?
CHL Ltd Return on capital employed is 20.75% for FY-2025, which is above its 5-year historical median of 19.31%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of CHL Ltd?
CHL Ltd Return on equity is 14.95% for FY-2025, which is in line with its 5-year historical median of 14.72%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of CHL Ltd?
CHL Ltd Cash conversion cycle is 5 days, below its 5-year historical median of 10 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.57 0.55
ROE (%) 14.95 14.72
ROCE (%) 20.75 19.31
Cash Conversion Cycle 5 days 10 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of CHL Ltd?
CHL Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of CHL Ltd?
CHL Ltd Debt to cash flow from operations is 0.01, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of CHL Ltd?

Q.1 Promoter shareholding and pledge status of CHL Ltd?
Promoters hold 72.84% of the CHL Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does CHL Ltd performance compare with that of its Peers?

Q.1 Revenue growth of CHL Ltd vs industry peers?
CHL Ltd revenue CAGR is 12.39%, compared to the industry median CAGR of 3.58%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 17.5 3.6
Gross Profit Growth (%) 22.6 15.6
Operating Profit Growth (%) 16.7 13.5
Net Profit Growth (%) 19.1 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.57 0.27
ROE (%) 14.95 2.92
ROCE (%) 20.75 6.09
Cash Conversion Cycle (days) 5.25 -

Valuation & price assessment

Q.1 Stock return of CHL Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
10.8% 36.6% 9% 4.9%
Q.2 Valuation ratios of CHL Ltd vs historical?
The current P/E ratio of 11.73 is higher than its historical median of 9.71, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 11.73 9.71 32.28
Price to Book 0.93 0.98 1.81
Price to Sales 1.83 2.21 5.80
EV to EBITDA 5.39 5.94 17.25

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