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The Indian Hotels Company Ltd. Stock Analysis

Mid Cap
Evaluated by 2534 users | BSE: 500850 | NSE: INDHOTEL |
Hotel, Resort & Restaurants
Indian Hotels Company (IHCL) established in 1903 opened its first hotel Taj Mahal Palace & Tower, Mumbai.IHCL a part of the Tata Group that has 57 hotels in 40 location across India. Outside India its has 18 hotels in Maldives, Mauritius, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
The Indian Hotels Company Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.69%4.34%2.1%0.32%0.39%4.99%4.54%4.83%6.3%7.32%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6731,8091,8761,9302,0242,2682,4022,5842,7802,743
Y-o-Y Gr. Rt.-8.1%3.7%2.9%4.9%12%5.9%7.6%7.6%-1.3%
Adjusted EPS (Rs.) 1.791.830.31-0.84-0.720.840.691.12.362.54
Y-o-Y Gr. Rt.-2.2%-83.1%-371%NANA-17.9%59.4%114.6%7.6%
Book Value per Share (Rs.) 38.2640.0838.2831.1830.2922.4726.1836.9537.738.54
Adjusted Net Profit 14514927.1-72.6-62.488.473.4130281302
Net Op. Cash Flow (Rs. Cr.) 466449332368401469458481547611
Debt to Cash Flow from Ops 5.025.977.67.318.014.64.473.713.263.18
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
The Indian Hotels Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.7%6.3%4.5%-1.3%
Adjusted EPS 4%NA54.4%7.6%
Book Value per Share 0.14.913.82.2
Share Price 5% 3.3% -3.9% -33.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 4.914.50.81-2.42-2.353.542.853.646.336.67
Operating Profit Margin (%) 25.0122.4921.6120.3317.7718.6721.6524.3426.2427.74
Net Profit Margin (%) 8.688.221.44-3.76-3.083.93.065.0410.1111.01
Debt to Equity 0.750.820.7611.230.910.740.410.40.42
Working Capital Days 343322330337319281203130138154
Cash Conversion Cycle -38-16-14-17-16-10-6-4-2-6
Entity Percentage Holding
Promoters 40.75%
Institutions 41.98%
Non-Institutions 17.26%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of The Indian Hotels Company Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that The Indian Hotels Company Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of The Indian Hotels Company Ltd.'s performance infers:

The Indian Hotels Company Ltd. earnings have grown by 0%, whereas share price has appreciated 3.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of The Indian Hotels Company Ltd. share prices over the last 10 years. Here is what we found out:

The Indian Hotels Company Ltd. share price has appreciated 0.5% annually over the past ten years.

Indian Hotels Company (IHCL) established in 1903 opened its first hotel Taj Mahal Palace & Tower, Mumbai.IHCL a part of the Tata Group that has 57 hotels in 40 location across India. Outside Read More

Indian Hotels Company (IHCL) established in 1903 opened its first hotel Taj Mahal Palace & Tower, Mumbai.IHCL a part of the Tata Group that has 57 hotels in 40 location across India. Outside India its has 18 hotels in Maldives, Mauritius, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa, and the Middle East.

In India, the Taj is recognized for its premier hospitality, excellance in dining, business facilities, interiors and world-class personalized service.

In cuisine, Taj was first to introduce Sichuan, Thai, Italian, Mexican, and Californian cuisine into the country. . In 1972, it was the first to open a 24-hour coffee shop in India at Taj Mahal Palace & Tower, Mumbai.

IHCL has created hotel chains under different brand such as  Taj hotels, Taj Safari, Taj Exotica, The Gateway Hotel  and Ginger.

IHCL  has strategic alliance with Okura Hotels & Resorts and The Shilla Hotels & Resorts .It has partnership pacts with Silversea Cruises, under this it has opened 19 Taj Luxury Hotels.

It also owns three personal jets under the name Taj Air, which cover 114 destinations. It has clients like Aditya Birla group, Tata Group, Cadbury India, Intel, Warner Brothers and many more.

Awards/Achievements:

IHCL’s Taj Hotels Resorts and Palaces received the 2008 GOLD Magellan Award for its Brand Campaign - 'No Room for the Ordinary' in the Advertising / Marketing Campaign Category and Print advertising Category.

Taj Hotels Resorts and Palaces bagged the award for ‘The Best Business Hotel Chain in India’ by the readers in UK at the 2008 Business Traveller Awards.

Taj Hotels Resorts and Palaces ranked top in Asia Pacific’s Top 1,000 Brands survey in the hotel segment.

IHCL received Dun & Bradstreet -- American Express Corporate Awards 2007 -- in the Hotels category .

IHCL won Avaya GlobalConnect Customer Responsiveness Awards 2007 – Customer Responsive Business Practice 2007 for its  “Customer Responsiveness'.

Recent development:

IHCL is planning a Rs.1800 crore expansion in the next three years .It will set up four airport hotels in the country. It is also planning to establish its presence in Andaman.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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