Leela Palaces Hotels & Resorts Ltd.
NSE: THELEELALeela Palaces Hotels & Resorts Ltd.: A 30-second snapshot
The Leela Palaces Hotels & Resorts (THELEELA) trades at ₹414.15, 12.7% below its 52-week high, with a trailing PE of 33.3 and forward PE of 23.5 reflecting consensus expectations of earnings acceleration. Debt-to-equity of 28.07 is the most prominent structural feature — high even after accounting for the asset-heavy nature of luxury hospitality — though the trend is reported as falling. Five-year revenue growth of 8.2% and earnings CAGR of 21.9% point to improving profitability, while the company reported record FY26 results and is pursuing active expansion.
P/E
33.3
Forward P/E
23.5
ROE
+8.0%
Debt / Equity
28.07
Profit Margin
+26.4%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
60/100
News
8 headlines · 5 positive · 0 negative
The Leela Palaces Hotels & Resorts posts record FY26, doubles down on expansion and profitability - Storyboard18
Storyboard18
Leela Palaces, Hotels & Resorts delivers record FY 26 results, leading growth and margins with highest annua.. - ET Hospitality
ET Hospitality
Leela Palaces Releases Q4 FY26 Investor Presentation Ahead of Earnings Call - scanx.trade
scanx.trade
Leela Palaces' Indian and international ambitions as the luxury challenger turns 40 - Hospitality ON
Hospitality ON
The Leela Celebrates 40 Years Of Indian Luxury With Expansion Plans - Outlook Traveller
Outlook Traveller
Recent context
- ·The company reported record FY26 results in late April 2026 and released a Q4 FY26 investor presentation ahead of its earnings call, with coverage from ET Hospitality and Storyboard18 characterising the outcome as a strong year for margins and growth.
- ·At its 40th anniversary, The Leela disclosed expansion plans across both Indian properties and international ambitions, positioning itself as a luxury challenger with a broader footprint strategy.
- ·Mean analyst rating of 1.36 across 14 analysts (1–5 scale, lower = more constructive), reflecting a constructive coverage profile despite the stock trading below its short- and long-term moving averages.
Strengths
- +Lowest trailing PE in the six-stock peer group (33.3 vs next-lowest 64.9 for Asian Paints), with forward PE of 23.5 implying consensus earnings growth of roughly 41% over the next twelve months.
- +Five-year earnings CAGR of 21.9% alongside 4 of available years with positive FCF, and debt trend classified as falling — indicating improving profitability and cash generation capacity.
- +Profit margin of 26.4% is notable for a capital-intensive hospitality operator, and FY26 was reported as a record year with expansion plans announced for both domestic and international markets.
- +Quality score of 50 ranks first among the six reported peers (peers range 23–49), and news sentiment is uniformly constructive: 5 positive, 3 neutral, 0 negative across 8 recent articles.
Weaknesses
- −Debt-to-equity of 28.07 is extremely elevated; even for an asset-heavy hospitality business, this level creates material sensitivity to interest-rate changes or any softening in occupancy and room rates.
- −ROE of 8.01% has not cleared 15% in any tracked year, ranking 4 of 6 in the peer set; this is substantially below Titan (37.13%) and Trent (27.13%), suggesting capital efficiency remains a structural challenge.
- −Price is below both the 50-DMA (₹422.81) and 200-DMA (₹425.31) with a 3-month decline of 6.66%, indicating recent price momentum is negative despite positive fundamental news flow.
- −Revenue growth over five years at 8.2% is modest relative to the earnings CAGR of 21.9%, suggesting margin expansion rather than top-line volume has driven profit improvement — a less durable source if cost pressures re-emerge.
Open questions
- ?Does the falling debt-to-equity trend reflect active deleveraging from cash flows, or is it primarily a function of asset revaluations and equity issuance — and at what D/E level does the balance sheet become less constraining?
- ?Is the 21.9% five-year earnings CAGR driven by operating leverage on improving occupancy, structural cost reduction, or one-time items — and which of these is likely to persist through the next expansion cycle?
- ?How does THELEELA's capital-allocation model for new properties (owned vs managed vs leased) affect the D/E trajectory and the eventual ROE profile as new assets stabilise?
- ?What is the historical relationship between luxury hospitality RevPAR cycles and THELEELA's earnings — and how sensitive is the current forward PE of 23.5 to a scenario where RevPAR growth moderates by 5–10%?
Peer comparison: Consumer Goods
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| THELEELA | Leela Palaces Hotels & Resorts Ltd.You're viewing | 33.3 | +8.0% | 50 |
| Industry avg | across 5 peers | 79.5 | +19.6% | 37 |
| TRENT | Trent Ltd. | 84.7 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.2 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 73.0 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 64.9 | — | 23 |
Technical state
Current price
₹414.15
SMA 50
₹422.81
SMA 200
₹425.31
RSI (14)
44.0 (neutral)
From 52w high
-12.7%
1Y return
—
3M return
-6.7%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 28.07 is extremely elevated for a hospitality company; while the trend is falling, this level implies high interest-burden sensitivity to any revenue softness or occupancy decline.
- mediumROE of 8.01% has not crossed 15% in any tracked year (0 of available years above 15%); meaningfully below sector peers — Titan at 37.13% and Trent at 27.13% — indicating weaker capital efficiency despite a 21.9% five-year earnings CAGR.
- mediumCurrent price of ₹414.15 is below both the 50-DMA (₹422.81) and 200-DMA (₹425.31); down 6.66% over the past 3 months and 12.7% off the 52-week high, with RSI at 43.96 in neutral-to-weak territory.
- lowSector peer grouping places THELEELA alongside paint and retail names (Asian Paints, Titan, Trent, DMart, Eternal) rather than hospitality-specific peers, which may distort PE and ROE comparisons.
Cross-section contradictions
- PE of 33.3 is the lowest among the 6 sector peers (ranked 1 of 6) and forward PE compresses further to 23.5, yet ROE ranks 4 of 6 — the relative valuation discount does not appear explained purely by quality, as the quality score of 50 is actually the highest in the peer set (peers range 23–49).
- Five-year earnings CAGR of 21.9% and 4 of available years with positive FCF point to improving fundamentals, while price is below both moving averages with a 6.66% quarterly decline — price action and fundamental trajectory are diverging.
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