ITC Hotels Ltd.
NSE: ITCHOTELSITC Hotels Ltd.: A 30-second snapshot
ITC Hotels (₹155.48) is a pure-play hospitality company recently demerged from ITC Ltd., trading 40.57% below its 52-week high and below both the 50-DMA and 200-DMA as of May 2026. FY26 delivered record revenue and profit with a ₹1/share dividend declared, and the company announced a ₹205 crore acquisition of The Zuri Kumarakom resort in Kerala. The trailing PE of 43.06x compresses to a forward PE of 27.40x, reflecting analyst expectations of significant near-term earnings growth across 13 analysts (mean rating 1.23 on a 1–5 scale, lower = more constructive).
P/E
43.1
Forward P/E
27.4
ROE
—
Debt / Equity
0.63
Profit Margin
+19.2%
Div. Yield
+0.6%
5Y ROE > 15%
0/5
5Y FCF > 0
1/5
Quality
42/100
News
6 headlines · 6 positive · 0 negative
ITC Hotels to acquire Kerala's Zuri Kumarakom Resort for Rs 205 crore - Asianet Newsable
Asianet Newsable
Business News | ITC Hotels to Acquire Kerala Based Luxury Resort 'The Zuri Kumarakom' for Rs 205 Crore - LatestLY
LatestLY
ITCHOTELS: Record revenue and profit growth in FY26, driven by strong demand and portfolio expansion - TradingView
TradingView
ITCHOTELS: Revenue and profit rose year-over-year, with a ₹1/share dividend and strong operational cash flow - TradingView
TradingView
ITC Hotels Limited Recommends Final Dividend for the Financial Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
Recent context
- ·ITC Hotels reported record revenue and profit for FY26 and declared a final dividend of ₹1/share, representing the company's first full fiscal year as a standalone listed entity.
- ·The board approved acquisition of The Zuri Kumarakom resort in Kerala for ₹205 crore, adding a luxury lakeside property to the portfolio and signalling continued inorganic expansion.
- ·Despite positive earnings and acquisition news published around 15 May 2026, price has declined 17.01% over the prior 3 months, with the stock remaining below both key moving averages and 40.57% below the 52-week high.
Strengths
- +Profit margin of 19.2% in FY26 is healthy for a branded hospitality operator, alongside record revenue and profit growth reported for the full year.
- +Trailing PE of 43.06x is the lowest among the 6 Consumer Goods peers tracked (Titan at 72.9x, Trent at 84.8x, DMart at 95.1x, Asian Paints at 65.0x), suggesting a relative valuation discount within the broader peer set.
- +D/E of 0.634 reflects moderate leverage; the company declared a final dividend of ₹1/share for FY26, indicating cash availability despite an active acquisition pipeline.
- +ITC Hotels brand heritage and announced inorganic expansion (₹205 crore Zuri Kumarakom acquisition) point to a deliberate portfolio-building strategy in the branded luxury segment.
Weaknesses
- −Price is 40.57% below the 52-week high, below both the 50-DMA (₹157.41) and 200-DMA (₹198.60), with a -16.62% return over 12 months and -17.01% over 3 months — multi-timeframe price deterioration persists despite positive FY26 earnings news.
- −FCF was positive in only 1 of the available historical years and the consistency score is 9; ROE years above 15% is zero — the capital generation history is thin for a stock priced at 43x trailing earnings.
- −Quality score of 29 ranks 5th of 6 among sector peers; the demerger history means 5-year revenue growth (-63.3%) and earnings growth (-49.8%) are distorted, leaving limited visibility into the organic growth trajectory.
- −The forward PE of 27.40x embeds approximately 57% earnings growth over the near term; if hospitality demand softens or the integration of new properties delays earnings, this implied growth may not materialise within the assumed timeframe.
Open questions
- ?Does the forward PE compression from 43x to 27x reflect realistic near-term earnings ramp-up, or does it assume a pace of demand recovery and property integration that the company's FCF history does not yet support?
- ?How does ITC Hotels' hotel RevPAR trajectory and occupancy rates compare to listed peers such as Indian Hotels (Taj) or EIH over the same FY26 period?
- ?The demerger from ITC Ltd. creates an incomplete 5-year financial series — what does the standalone pre-demerger hospitality segment EBITDA history look like, and does it support the current earnings multiple?
- ?Is the 40.57% drawdown from the 52-week high driven by sector-wide hospitality de-rating, valuation normalisation post-demerger listing euphoria, or company-specific operating disappointments?
Peer comparison: Consumer Goods
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ITCHOTELS | ITC Hotels Ltd.You're viewing | 43.1 | — | 29 |
| Industry avg | across 5 peers | 79.5 | +19.6% | 37 |
| TRENT | Trent Ltd. | 84.8 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.1 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 72.9 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 65.0 | — | 23 |
Technical state
Current price
₹155.48
SMA 50
₹157.41
SMA 200
₹198.60
RSI (14)
44.5 (neutral)
From 52w high
-40.6%
1Y return
-16.6%
3M return
-17.0%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highPrice is ₹155.48, down 40.57% from the 52-week high and below both the 50-DMA (₹157.41) and 200-DMA (₹198.60); the stock has declined 16.62% over 12 months and 17.01% over the past 3 months, indicating sustained deterioration across multiple timeframes.
- highFCF was positive in only 1 of the available years with a consistency score of 9; ROE years above 15% is zero and ROE data is unavailable — the capital generation track record is limited for a stock trading at a trailing PE of 43.06x.
- medium5-year revenue growth of -63.3% and earnings growth of -49.8% likely reflect the ITC demerger base-year distortion rather than organic contraction, but the incomplete historical series makes multi-year trend analysis unreliable.
- mediumQuality score of 29 ranks 5th of 6 in the Consumer Goods peer group. The peer set (Asian Paints, Titan, Trent, DMart, Eternal) is dominated by consumer-discretionary and retail names, making PE and ROE benchmarking of limited relevance for a pure-play hospitality operator.
- lowPrice change over 1Y is null for all 5 sector peers, eliminating relative price performance as a comparison dimension for this run.
Cross-section contradictions
- All 6 news items published around 15 May 2026 are positive — record FY26 revenue and profit, a ₹1/share dividend, and a ₹205 crore resort acquisition — yet price is down 17% over the 3 months ending the same period, a divergence between fundamental newsflow and market price action.
- Forward PE compresses from 43.06x trailing to 27.40x, implying approximately 57% near-term earnings growth expected by consensus, while FCF was positive in only 1 of the available historical years — earnings-quality history does not clearly support the valuation re-rating implied by that compression.
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 17 May 2026 · rotates through NIFTY 500 every ~5 days