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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500850 | NSE: INDHOTEL

Indian Hotels Co Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 4, 2024, 11:59 pm

Market Cap 94,153 Cr.
Current Price 661
High / Low721/371
Stock P/E73.3
Book Value 66.4
Dividend Yield0.26 %
ROCE15.1 %
ROE14.3 %
Face Value 1.00
PEG Ratio1.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Indian Hotels Co Ltd

Competitors of Indian Hotels Co Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HS India Ltd 26.7 Cr. 16.420.8/11.014.8 18.80.00 %6.90 %4.47 % 10.0
Gujarat Hotels Ltd 86.0 Cr. 227261/14618.2 1171.10 %13.9 %11.2 % 10.0
Graviss Hospitality Ltd 346 Cr. 49.065.0/35.1168 26.00.00 %1.80 %1.40 % 2.00
Goel Food Products Ltd 90.3 Cr. 47.978.0/25.118.1 11.81.04 %18.9 %25.4 % 10.0
Espire Hospitality Ltd 274 Cr. 203254/39.6145 2.450.00 %10.4 %126 % 10.0
Industry Average6,089.12N/A57.90N/AN/A12.2819.05N/A

All Competitor Stocks of Indian Hotels Co Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales3457281,1118721,2661,2331,6861,6251,4661,4331,9641,9051,550
Expenses4936567897138889391,0891,0901,0561,0781,2311,2461,101
Operating Profit-14973322159378294597535410355732660450
OPM %-43%10%29%18%30%24%35%33%28%25%37%35%29%
Other Income46131299183758294948404646
Interest11011412579626057575759535250
Depreciation103102100102103103103108109111114120117
Profit before tax-315-13010977231169495400294232605535328
Tax %-14%-9%21%-3%28%26%23%24%28%31%28%26%29%
Net Profit-302-1319672181130404339236179477438260
EPS in Rs-2.10-0.910.580.521.200.862.692.311.571.183.182.931.75

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3,7434,0664,1894,0234,0214,1044,5124,4631,5753,0565,8106,7696,853
Expenses3,2023,5043,7623,4113,4113,4323,6823,4961,9372,6514,0054,6094,656
Operating Profit542562427612610671830968-3624051,8052,1602,197
OPM %14%14%10%15%15%16%18%22%-23%13%31%32%32%
Other Income-374-497-193-43448390173325171142181180
Interest171169176376324269190341403428236220214
Depreciation288308291285299301328404410406416454463
Profit before tax-292-412-232-9131184402396-850-2581,2951,6661,700
Tax %34%27%49%99%372%66%39%11%-18%-14%25%28%
Net Profit-389-536-347-203-46104296364-796-2651,0531,3301,354
EPS in Rs-4.00-5.14-3.51-1.75-0.480.762.172.68-5.45-1.747.068.859.04
Dividend Payout %-15%0%0%-13%-55%47%21%17%-7%-23%14%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-37.79%35.26%41.50%77.34%326.09%184.62%22.97%-318.68%66.71%497.36%26.31%
Change in YoY Net Profit Growth (%)0.00%73.05%6.24%35.84%248.75%-141.47%-161.64%-341.65%385.39%430.65%-471.05%

Indian Hotels Co Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:8%
3 Years:63%
TTM:14%
Compounded Profit Growth
10 Years:29%
5 Years:35%
3 Years:50%
TTM:23%
Stock Price CAGR
10 Years:23%
5 Years:34%
3 Years:54%
1 Year:56%
Return on Equity
10 Years:3%
5 Years:4%
3 Years:9%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital8181819999119119119119142142142
Reserves2,8992,5562,1462,4812,4194,0624,2294,2383,5306,9207,8409,314
Borrowings3,8184,2525,0744,5263,3832,4272,3264,5015,5183,8883,1392,736
Other Liabilities2,4942,6262,5822,6912,6982,7062,8402,5842,2682,0522,3912,541
Total Liabilities9,2919,5149,8849,7978,5999,3149,51411,44211,43513,00213,51214,733
Fixed Assets5,8966,2156,2996,7625,8156,1636,4228,0598,4388,4158,8199,311
CWIP422554306290223197116244165194332256
Investments1,5631,4271,5871,5151,2441,5111,3351,4271,4831,9671,8912,261
Other Assets1,4111,3181,6921,2311,3171,4431,6411,7121,3492,4262,4702,905
Total Assets9,2919,5149,8849,7978,5999,3149,51411,44211,43513,00213,51214,733

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 502539495619535492711823-3196721,6191,935
Cash from Investing Activity -345-297-726341848-521-387-497-118-1,641-138-1,208
Cash from Financing Activity -117-212491-1,196-1,38196-343-2652801,659-1,528-985
Net Cash Flow3930260-237167-1962-157689-47-257

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow539.00558.00422.00608.00607.00669.00828.00964.00-367.00402.00-2.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days272526222529262451302826
Inventory Days93878580818373922361438482
Days Payable305292273286294330294383807550368364
Cash Conversion Cycle-186-179-162-184-189-217-195-268-520-376-256-257
Working Capital Days-32-126-63-157-112-68-109-81-220-88-51-47
ROCE %4%4%4%5%5%6%8%7%-6%1%13%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters40.75%41.05%38.19%38.19%38.19%38.19%38.19%38.19%38.19%38.12%38.12%38.12%
FIIs13.48%15.19%16.03%15.07%16.25%19.00%18.24%21.64%22.17%23.28%24.47%27.19%
DIIs26.93%25.16%28.51%29.56%29.19%26.55%27.47%24.05%23.13%22.19%20.65%18.29%
Government0.14%0.14%0.13%0.13%0.13%0.13%0.13%0.13%0.14%0.14%0.14%0.14%
Public18.70%18.47%17.14%17.05%16.22%16.12%15.97%15.98%16.38%16.27%16.63%16.26%
No. of Shareholders2,61,0463,57,5953,41,8153,79,5604,00,1074,23,4884,30,8964,48,7424,83,9614,85,6095,35,2535,56,019

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan46,539,6724.122908.969,421,7402024-09-29393.96%
Canara Robeco Emerging Equities14,032,0313.68877.079,421,7402024-09-2948.93%
Axis Midcap Fund12,423,6912.58776.549,421,7402024-09-2931.86%
Nippon India Multi Cap Fund10,500,1121.88656.319,421,7402024-09-2911.45%
Axis ELSS Tax Saver Fund9,421,7401.59588.919,421,7402024-09-290%
Nippon India Large Cap Fund8,000,0661.69500.049,421,7402024-09-29-15.09%
SBI Magnum Midcap Fund7,000,0002.15437.549,421,7402024-09-29-25.7%
Nippon India Growth Fund6,000,0001.22375.039,421,7402024-09-29-36.32%
Nippon India ELSS Tax Saver Fund4,750,0001.87296.99,421,7402024-09-29-49.58%
Nippon India Small Cap Fund3,574,2220.4223.419,421,7402024-09-29-62.06%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)8.867.06-1.97-6.052.98
Diluted EPS (Rs.)8.867.06-1.97-6.052.98
Cash EPS (Rs.)11.639.771.29-2.396.35
Book Value[Excl.RevalReserv]/Share (Rs.)71.1660.8453.9036.0143.06
Book Value[Incl.RevalReserv]/Share (Rs.)71.1660.8453.9036.0143.06
Revenue From Operations / Share (Rs.)47.5540.9021.5213.2437.53
PBDIT / Share (Rs.)16.4413.683.94-1.669.25
PBIT / Share (Rs.)13.2510.751.08-5.105.85
PBT / Share (Rs.)11.709.11-1.82-7.143.33
Net Profit / Share (Rs.)8.446.84-1.57-5.842.95
NP After MI And SOA / Share (Rs.)8.857.06-1.74-6.052.98
PBDIT Margin (%)34.5733.4518.32-12.5024.64
PBIT Margin (%)27.8526.285.03-38.5115.58
PBT Margin (%)24.6022.28-8.44-53.938.86
Net Profit Margin (%)17.7516.72-7.27-44.077.85
NP After MI And SOA Margin (%)18.6017.25-8.10-45.717.94
Return on Networth / Equity (%)13.3112.56-3.50-19.738.13
Return on Capital Employeed (%)14.6613.221.38-7.087.23
Return On Assets (%)8.477.33-1.89-6.253.07
Long Term Debt / Equity (X)0.000.040.190.600.48
Total Debt / Equity (X)0.020.100.280.670.52
Asset Turnover Ratio (%)0.470.290.170.100.29
Current Ratio (X)1.541.221.360.390.75
Quick Ratio (X)1.481.171.310.350.70
Dividend Payout Ratio (NP) (%)11.415.66-19.20-8.2516.77
Dividend Payout Ratio (CP) (%)8.384.0030.04-19.157.83
Earning Retention Ratio (%)88.5994.34119.20108.2583.23
Cash Earning Retention Ratio (%)91.6296.0069.96119.1592.17
Interest Coverage Ratio (X)10.638.231.31-0.483.22
Interest Coverage Ratio (Post Tax) (X)6.465.100.44-1.121.91
Enterprise Value (Cr.)83619.8146502.7035252.3016136.6411649.23
EV / Net Operating Revenue (X)12.358.0011.5310.242.61
EV / EBITDA (X)35.7323.9362.96-81.9010.59
MarketCap / Net Operating Revenue (X)12.447.9311.088.372.00
Retention Ratios (%)88.5894.33119.20108.2583.22
Price / BV (X)8.905.774.793.622.04
Price / Net Operating Revenue (X)12.447.9311.088.372.00
EarningsYield0.010.02-0.01-0.050.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indian Hotels Co Ltd as of October 5, 2024 is: ₹697.81

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 5, 2024, Indian Hotels Co Ltd is Undervalued by 5.57% compared to the current share price ₹661.00

Intrinsic Value of Indian Hotels Co Ltd as of October 5, 2024 is: ₹1,207.11

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 5, 2024, Indian Hotels Co Ltd is Undervalued by 82.62% compared to the current share price ₹661.00

Last 5 Year EPS CAGR: 72.99%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -96.17, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -249.08, which is a positive sign.
  3. The company has higher reserves (4,386.17 cr) compared to borrowings (3,799.00 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 5.50%, which may not be favorable.
  2. The company has not shown consistent growth in sales (4.00) and profit (-86.08).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Indian Hotels Co Ltd:
    1. Net Profit Margin: 17.75%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.66% (Industry Average ROCE: 12.28%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.31% (Industry Average ROE: 19.05%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.46
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.48
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 73.3 (Industry average Stock P/E: 57.9)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Indian Hotels Company Ltd. is a Public Limited Listed company incorporated on 01/04/1902 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L74999MH1902PLC000183 and registration number is 000183. Currently Company is involved in the business activities of Short term accommodation activities. Company’s Total Operating Revenue is Rs. 2003.34 Cr. and Equity Capital is Rs. 142.04 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hotels, Resorts & RestaurantsMandlik House, Mumbai Maharashtra 400001investorrelations@ihcltata.com
http://www.ihcltata.com
Management
NamePosition Held
Mr. N ChandrasekaranChairman & Non-Exe.Director
Mr. Puneet ChhatwalManaging Director & CEO
Ms. Anupam NarayanInd. Non-Executive Director
Ms. Hema RavichandarInd. Non-Executive Director
Mr. Venkataramanan AnantharamanInd. Non-Executive Director
Mr. Nasser MunjeeInd. Non-Executive Director

FAQ

What is the latest fair value of Indian Hotels Co Ltd?

The latest fair value of Indian Hotels Co Ltd is ₹697.81.

What is the Market Cap of Indian Hotels Co Ltd?

The Market Cap of Indian Hotels Co Ltd is 94,153 Cr..

What is the current Stock Price of Indian Hotels Co Ltd as on 05 October 2024?

The current stock price of Indian Hotels Co Ltd as on 05 October 2024 is ₹661.

What is the High / Low of Indian Hotels Co Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indian Hotels Co Ltd stocks is 721/371.

What is the Stock P/E of Indian Hotels Co Ltd?

The Stock P/E of Indian Hotels Co Ltd is 73.3.

What is the Book Value of Indian Hotels Co Ltd?

The Book Value of Indian Hotels Co Ltd is 66.4.

What is the Dividend Yield of Indian Hotels Co Ltd?

The Dividend Yield of Indian Hotels Co Ltd is 0.26 %.

What is the ROCE of Indian Hotels Co Ltd?

The ROCE of Indian Hotels Co Ltd is 15.1 %.

What is the ROE of Indian Hotels Co Ltd?

The ROE of Indian Hotels Co Ltd is 14.3 %.

What is the Face Value of Indian Hotels Co Ltd?

The Face Value of Indian Hotels Co Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Indian Hotels Co Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE