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The Indian Hotels Company Ltd Stock Analysis

Mid Cap
Evaluated by 2643 users | BSE: 500850 | NSE: INDHOTEL |
Hotel, Resort & Restaurants

The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj - the hallmark of iconic hospitality, SeleQtions, a named...

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 5.7% -0.4% -13.4% 23%
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 41.43%
Non-Institutions 17.81%
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 depreciated -0.4% CAGR over the past five years, indicating the company's share price is likely undervalued. 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 depreciated 2% annually over the past ten years.

The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj - the hallmark of iconic hospitality, SeleQtions, a named collection of hotels, Vivanta, sophisticated upscale hotels and Ginger which is revolutionizing the lean luxe segment. Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its

The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj - the hallmark of iconic hospitality, SeleQtions, a named collection of hotels, Vivanta, sophisticated upscale hotels and Ginger which is revolutionizing the lean luxe segment. Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel - The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of many hotels including under development globally across continents, countries and in many locations. The Indian Hotels Company Limited (IHCL) is South Asia’s largest hospitality company by market capitalization. It is primarily listed on the BSE and NSE.

Business area of the company

The company is South Asia’s largest hospitality focussed enterprise with true Indian origins.

Brands

  • Taj
  • SeleQtions
  • Vivanta

Retail Services

  • Jiva
  • Khazana
  • Salon
  • Food & Beverages

Other Services

  • Taj Holidays
  • Taj Experiences Gift Card

Awards

  • Ethical Boardroom Corporate Governance Awards 2019
  • Global Hospitality Icon of the Year Award at the Patwa International Travel Awards
  • Golden Peacock Award for Excellence in Corporate Governance 2019
  • CONDE Nast Traveller Readers’ Choice Awards 2019 - UK and US
  • CONDE Nast Traveller Gold List 2020
  • CONDE Nast Traveller India Readers’ Choice Awards 2019

Milestones

  • 1899: The Indian Hotels Company Limited is incorporated.
  • 1903: Launched the Taj Mahal Palace in Mumbai, India.
  • 1970: Takes over management of Taj lake Palace, Udaipur and Rambagh Palace, Jaipur.
  • 1974: launches Fort Aguada, The first five-star deluxe beach resort in Goa.
  • 1974: launches Taj Coromandal in Chennai.
  • 1979: Forays into Africa with Taj Pamodzi Lusaka, Zambia.
  • 1982: Acquires the ST. James’ court in London.
  • 1982: The Taj Palace, New Delhi, is opened for the Asian Games.
  • 1998: Opens Taj Exotic in Bentota, Sri Lanka.
  • 2000: Established Taj GVK Hotels and Resorts Limited in Hyderabad.
  • 2001: Launches Taj Exotica Resort and Spa in Maldives.
  • 2004: Launches Taj Wellington Mews Luxury Residency, Mumbai.
  • 2005: Forays into New York, US, with a management contract to operate the Pierre.
  • 2005: Restores Umaid Bhawan Palace in Jodhpur.
  • 2007: Acquires Ritz-Carlton in Boston, US, later rename the Taj Boston.
  • 2007: Launches Taj Campton place in San Francisco.
  • 2008: Launches The Gateway Hotels and Resorts.
  • 2008: South-West coastal Indian restaurants Quilon in London receives a Michelin- Star.
  • 2010: launches new brand Vivanta by Taj.
  • 2010: Celeberates the reopening of the Taj Mahal Palace in Mumbai after the terrorist attracts of 2008.
  • 2012: Launches a free two-year hospitality trade training programme for youth from below poverty line (BPL) families.
  • 2014: Rebrands and repositions Taj 51 Buckingham Gate suites & residency and ST. James’ Court, A Taj Hotel, London under the luxury brand.
  • 2015: Redesigns the award-winning programme, Taj innercircle announces the opening of Taj Duabi, Unveils ‘Tajness’.
  • 2017: IHCL restructures its brand architectures.
  • 2018: Unveils ‘Aspiration 2020’
  • 2018: Taj exotica resorts & spa, Andaman, a luxury resort offering, commences operation in February.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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