Check Before You Invest : The Indian Hotels Company Ltd

Q: Which industry/sub-sector does The Indian Hotels Company Ltd belong to?

The Indian Hotels Company Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.

Q: Is The Indian Hotels Company Ltd a good quality company?

The Indian Hotels Company 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: Is The Indian Hotels Company Ltd undervalued or overvalued?

The Indian Hotels Company Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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. Price to Earnings, Current: 46.5, Historic Median: 70.45. Price to Book, Current: 7.33, Historic Median: 6.58. Price to Sales, Current: 17.39, Historic Median: 17.57. EV to EBITDA, Current: 36.26, Historic Median: 46.23

Q: Is The Indian Hotels Company Ltd a good buy now?

The Indian Hotels Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd revenue growth is 11.6% for FY-2025, which is below its 5-year CAGR of 12.38%, indicating slower growth.

Q: Gross Profit margin of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 43.9% for FY-2025, which is above its 5-year median of 36.9%, indicating increasing margins.

Q: Operating Profit Margin of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.33% for FY-2025, which is above its 5-year median of 37.45% indicating increasing margins.

Q: Net Profit Margin of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Net Profit Margin is 28.74% for FY-2025, is above its 5-year median of 22.76%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 43.9, Historic Median: 36.9. Operating Profit Margin (%), Current: 41.33, Historic Median: 37.45. Net Profit Margin (%), Current: 28.74, Historic Median: 22.76

Q: Return on Asset of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Return on Asset is 10.59%, which is above its 5-year historical median of 7.36%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Return on capital employed is 18.57% for FY-2025, which is above its 5-year historical median of 13.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : The Indian Hotels Company Ltd

Snapshot

Q.1 Which industry/sub-sector does The Indian Hotels Company Ltd belong to?

The Indian Hotels Company Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.

Q.2 Is The Indian Hotels Company Ltd a good quality company?

The Indian Hotels Company 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 The Indian Hotels Company Ltd undervalued or overvalued?

The Indian Hotels Company Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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	46.5	70.45
Price to Book	7.33	6.58
Price to Sales	17.39	17.57
EV to EBITDA	36.26	46.23

Q.4 Is The Indian Hotels Company Ltd a good buy now?

The Indian Hotels Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd revenue growth is 11.6% for FY-2025, which is below its 5-year CAGR of 12.38%, indicating slower growth.

Q.2 Gross Profit margin of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 43.9% for FY-2025, which is above its 5-year median of 36.9%, indicating increasing margins.

Q.3 Operating Profit Margin of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.33% for FY-2025, which is above its 5-year median of 37.45% indicating increasing margins.

Q.4 Net Profit Margin of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Net Profit Margin is 28.74% for FY-2025, is above its 5-year median of 22.76%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	43.9	36.9
Operating Profit Margin (%)	41.33	37.45
Net Profit Margin (%)	28.74	22.76

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Return on Asset is 10.59%, which is above its 5-year historical median of 7.36%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Return on capital employed is 18.57% for FY-2025, which is above its 5-year historical median of 13.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Return on equity is 13.21% for FY-2025, which is above its 5-year historical median of 9.95%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Cash conversion cycle is -13 days, in line with its 5-year historical median of -13 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.37	0.32
ROE (%)	13.21	9.95
ROCE (%)	18.57	13.83
Cash Conversion Cycle	-13 days	-13 days

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

Q.9 Debt to Equity ratio of The Indian Hotels Company Ltd?

The Indian Hotels Company 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 The Indian Hotels Company Ltd?

The Indian Hotels Company Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of The Indian Hotels Company Ltd?

Q.1 Promoter shareholding and pledge status of The Indian Hotels Company Ltd?

Promoters hold 38.12% of the The Indian Hotels Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does The Indian Hotels Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of The Indian Hotels Company Ltd vs industry peers?

The Indian Hotels Company Ltd revenue CAGR is 12.38%, compared to the industry median CAGR of 6.19%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	11.6	6.2
Gross Profit Growth (%)	21.3	26.9
Operating Profit Growth (%)	18.7	21.7
Net Profit Growth (%)	29	28.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.37	0.32
ROE (%)	13.21	9.95
ROCE (%)	18.57	13.83
Cash Conversion Cycle (days)	-13.11	-13

Valuation & price assessment

Q.1 Stock return of The Indian Hotels Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	20.4%	39.1%	21%	-14.7%

Q.2 Valuation ratios of The Indian Hotels Company Ltd vs historical?

The current P/E ratio of 46.5 is lower than its historical median of 70.45, indicating that the stock is trading below 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	46.5	70.45	32.28
Price to Book	7.33	6.58	1.81
Price to Sales	17.39	17.57	5.80
EV to EBITDA	36.26	46.23	17.25

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Check Before You Invest : The Indian Hotels Company Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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