Indian Hotels Co. Ltd.
NSE: INDHOTELIndian Hotels Co. Ltd.: A 30-second snapshot
Indian Hotels Company (INDHOTEL) trades at ₹646.75, carrying a trailing PE of 44.1 (forward PE 35.3) and ROE of 16.43% against a debt-to-equity ratio of 18.99 — the highest structural leverage metric in its peer comparison set. The stock is 7.5% below its 200-DMA and 14.79% lower year-on-year, while 5-year revenue and earnings growth both run at approximately 14.5–14.7% CAGR.
P/E
44.1
Forward P/E
35.3
ROE
+16.4%
Debt / Equity
18.99
Profit Margin
+20.9%
Div. Yield
+0.5%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
67/100
News
7 headlines · 2 positive · 2 negative
Indian Hotels (NSE:INDHOTEL) Strong Profits May Be Masking Some Underlying Issues - simplywall.st
simplywall.st
Travel and hospitality shares fall for 2nd day: IndiGo, IHCL, others down up to 5% on PM Modi's appeal - TradingView
TradingView
The Indian Hotels Company Limited Proposes Recommends Dividend - marketscreener.com
marketscreener.com
Buy ITC Hotels, IHCL, Leela, Chalet, Lemon Tree, Brigade Hotel, says ICICI Sec - Business Today
Business Today
Raja Venkatraman, MarketSmith recommend five stocks for 29 May - Dailyhunt
Dailyhunt
Recent context
- ·In May 2026, travel and hospitality stocks including INDHOTEL declined over two consecutive sessions following PM Modi's appeal to citizens to avoid travel to Turkey and Azerbaijan, affecting sector-wide sentiment.
- ·INDHOTEL declared a dividend in May 2026 (0.5% trailing yield), and ICICI Securities named it among hospitality names covered in a sector note published on May 6, 2026 — the broker's exact stated rating is cited in the news headline as part of a sector grouping.
- ·A simplywall.st analysis published May 19, 2026 flagged that strong reported profits for Indian Hotels may be obscuring underlying issues, adding a cautionary data point alongside the otherwise neutral-to-mixed news sentiment (2 positive, 3 neutral, 2 negative across 7 items).
Strengths
- +Lowest PE (44.1) among the 6-stock peer comparison group, where peers range from 58 (Asian Paints) to 89 (DMart), alongside the highest quality score (60 vs peer range 34–58).
- +FCF was positive in 4 of the tracked years, and the fundamental consistency score of 79 reflects relative earnings stability across the measurement period.
- +5-year revenue growth of 14.5% CAGR and earnings growth of 14.7% CAGR indicate top-line and bottom-line expansion have been broadly in step over the medium term.
- +Forward PE of 35.3 represents a 20% compression from the trailing PE of 44.1, reflecting analyst consensus that near-term earnings growth is expected to outpace the current multiple.
Weaknesses
- −Debt-to-equity of 18.99 is substantially elevated for a non-financial hospitality operator; the debt trend is flat, not declining, meaning leverage reduction is not occurring at a measurable pace in the available data window.
- −ROE of 16.43% has exceeded 15% in only 2 of the tracked historical years, indicating the current return level is at or near the historically observed ceiling rather than a structural baseline.
- −Price has declined 14.79% over 12 months and is 7.5% below the 200-DMA (₹698.91); the 52-week drawdown from the peak stands at 20.35%.
- −Profit margin of 20.9% and quality score of 60 place the company ahead of most sector peers on reported metrics, but at least one third-party analysis (May 2026) has questioned whether reported earnings quality fully captures underlying business dynamics.
Open questions
- ?Does the debt-to-equity ratio of 18.99 reflect project-level financing structures typical for hotel developments, or does it represent balance-sheet leverage that would need servicing if RevPAR or occupancy declined materially?
- ?ROE has exceeded 15% in only 2 of the tracked historical years — is the current 16.43% level driven by a structural improvement in asset utilisation and pricing power, or is it a cyclical peak tied to post-pandemic travel demand recovery?
- ?The stock trades at a 20.35% drawdown from its 52-week high while fundamental metrics rank at or near the top of its peer group — what factor or set of factors might explain the divergence between relative fundamental positioning and recent price performance?
- ?The sector comparison groups INDHOTEL with FMCG and retail peers (Asian Paints, Titan, DMart) rather than hospitality operators — how does INDHOTEL's valuation and return profile compare when benchmarked against direct hotel and hospitality sector peers instead?
Peer comparison: Consumer Goods
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| INDHOTEL | Indian Hotels Co. Ltd.You're viewing | 44.1 | +16.4% | 60 |
| Industry avg | across 5 peers | 75.8 | +19.9% | 44 |
| ASIANPAINT | Asian Paints Ltd. | 58.3 | +20.9% | 58 |
| TRENT | Trent Ltd. | 85.6 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 88.9 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 70.5 | +37.1% | 34 |
Technical state
Current price
₹646.75
SMA 50
₹638.75
SMA 200
₹698.91
RSI (14)
47.5 (neutral)
From 52w high
-20.4%
1Y return
-14.8%
3M return
-5.0%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 18.99 is exceptionally elevated for a listed hospitality company; debt trend is reported as flat (not declining) over the tracked period. In a capital-intensive sector where occupancy rates and RevPAR are cyclical, sustained high leverage amplifies downside to earnings and free cash flow if demand moderates.
- mediumPrice (₹646.75) is 7.5% below the 200-DMA (₹698.91) and has been in a 12-month decline of 14.79%. The 52-week drawdown stands at 20.35%. Price is above the 50-DMA (₹638.75) and RSI is neutral at 47.5, but the medium-term trend remains below the long-term moving average.
- lowROE of 16.43% has exceeded 15% in only 2 of the tracked historical years (persistence.roeYearsAbove15 = 2), indicating the current level is near the upper end of a historically variable range rather than a sustained floor.
- lowNews sample is sparse at 7 total items. One headline from simplywall.st (2026-05-19) flags that strong reported profits may be masking underlying issues; a separate item notes the stock fell alongside travel and hospitality peers following PM Modi's appeal to boycott Turkey/Azerbaijan tourist destinations.
Cross-section contradictions
- Fundamental consistency score of 79 with FCF positive in 4 of tracked years and record-level revenue growth (5y CAGR 14.5%) coexists with a 14.79% price decline over 12 months and position 7.5% below the 200-DMA — strong operational delivery has not been reflected in price momentum over this period.
- INDHOTEL ranks 1st of 6 on both PE (44.1 vs peer range 58–89) and quality score (60 vs peer range 34–58) within its sector peer group, yet carries the only observable 12-month price decline in the group (peer priceChange1Y data is null, preventing direct comparison) — sector-relative fundamental positioning does not align with recent price trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days