BSE:500850

Stock Analysis Report

Executive Summary

The Indian Hotels Company Limited, together with its subsidiaries, owns, operates, and manages hotels, palaces, and resorts in India and internationally.


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Indian Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500850 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

500850

2.7%

IN Hospitality

-0.07%

IN Market


1 Year Return

-1.9%

500850

-7.3%

IN Hospitality

9.5%

IN Market

Return vs Industry: 500850 exceeded the Indian Hospitality industry which returned -7.3% over the past year.

Return vs Market: 500850 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

500850IndustryMarket
7 Day4.5%2.7%-0.07%
30 Day-3.4%0.2%-0.7%
90 Day-7.5%-1.4%3.2%
1 Year-1.5%-1.9%-1.7%-7.3%11.5%9.5%
3 Year23.9%14.8%35.7%22.1%23.6%16.7%
5 Year33.7%23.7%52.9%34.8%35.4%22.9%

Price Volatility Vs. Market

How volatile is Indian Hotels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Indian Hotels undervalued compared to its fair value and its price relative to the market?

41.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500850 (₹140) is trading above our estimate of fair value (₹94.81)

Significantly Below Fair Value: 500850 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500850 is poor value based on its PE Ratio (42x) compared to the Hospitality industry average (18.9x).

PE vs Market: 500850 is poor value based on its PE Ratio (42x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500850 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 500850 is overvalued based on its PB Ratio (4.1x) compared to the IN Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Indian Hotels forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500850's forecast earnings growth (24.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 500850's earnings (24.3% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500850's revenue (9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500850's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500850's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Indian Hotels performed over the past 5 years?

74.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500850 has a large one-off gain of ₹904.6M impacting its December 31 2019 financial results.

Growing Profit Margin: 500850's current net profit margins (8.4%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: 500850 has become profitable over the past 5 years, growing earnings by 74% per year.

Accelerating Growth: 500850's earnings growth over the past year (59.7%) is below its 5-year average (74% per year).

Earnings vs Industry: 500850 earnings growth over the past year (59.7%) exceeded the Hospitality industry 27.3%.


Return on Equity

High ROE: 500850's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Indian Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: 500850's short term assets (₹10.0B) do not cover its short term liabilities (₹23.4B).

Long Term Liabilities: 500850's short term assets (₹10.0B) do not cover its long term liabilities (₹38.5B).


Debt to Equity History and Analysis

Debt Level: 500850's debt to equity ratio (32.2%) is considered satisfactory.

Reducing Debt: 500850's debt to equity ratio has reduced from 155.2% to 32.2% over the past 5 years.


Balance Sheet

Inventory Level: 500850 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500850's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 500850 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 500850 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Indian Hotels's current dividend yield, its reliability and sustainability?

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500850's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500850's dividend (0.36%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 500850's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500850's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15%), 500850's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500850's dividends in 3 years are forecast to be well covered by earnings (20.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Puneet Chhatwal (55yo)

2.3yrs

Tenure

₹60,164,000

Compensation

Mr. Puneet Chhatwal has been the Chief Executive Officer and Managing Director of Indian Hotels Company Ltd (IHCL) since November 6, 2017 and its Director since November 6, 2017. Mr. Chhatwal serves as Chi ...


CEO Compensation Analysis

Compensation vs Market: Puneet's total compensation ($USD837.55K) is above average for companies of similar size in the Indian market ($USD634.66K).

Compensation vs Earnings: Puneet's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Puneet Chhatwal
MD, CEO & Director2.3yrs₹60.16mno data
Giridhar Sanjeevi
Executive VP & CFO2.8yrs₹33.10mno data
Beejal Desai
Senior VP0yrs₹15.90mno data
Maru Niyant
Vice President of Corporate Finance0yrsno datano data
Rajendra Misra
Executive VP & General Counsel0yrsno datano data
Renu Basu
Senior Vice President of Global Sales & Marketing0yrsno datano data
P. V. Murthy
Executive VP & Global Head of Human Resources0yrsno datano data
S. Ananda
Corporate Chef of Premium Hotels & Executive Chef of Taj President Hotel - Mumbai0yrs₹6.92mno data
Maneck Patel
Senior Vice President of Business & International Consular Corps Relations16.1yrsno datano data
Suma Venkatesh
Executive Vice President of Real Estate & Development4.5yrsno datano data

3.6yrs

Average Tenure

56yo

Average Age

Experienced Management: 500850's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Puneet Chhatwal
MD, CEO & Director2.3yrs₹60.16mno data
Hema Ravichandar
Additional Independent Director0.5yrsno datano data
Venu Srinivasan
Non-Executive1.5yrs₹30.00kno data
Nasser Munjee
Additional Independent Director0.5yrsno datano data
Mehernosh Kapadia
Non-Executive1.5yrs₹25.76m0.0053% 8.9m
Natarajan Chandrasekaran
Chairman of the Board3yrs₹210.00kno data
Vibha Rishi
Non-Executive Independent Director5.4yrs₹4.44mno data
Venkataramanan Anantharaman
Additional Independent Director0.5yrsno datano data

1.5yrs

Average Tenure

59yo

Average Age

Experienced Board: 500850's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Indian Hotels Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Indian Hotels Company Limited
  • Ticker: 500850
  • Exchange: BSE
  • Founded: 1899
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹166.496b
  • Shares outstanding: 1.19b
  • Website: https://www.tajhotels.com

Number of Employees


Location

  • The Indian Hotels Company Limited
  • Express Towers
  • 9th Floor
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500850BSE (Mumbai Stock Exchange)YesOrdinary SharesININRMar 1993
INDHOTELNSEI (National Stock Exchange of India)YesOrdinary SharesININRMar 1993

Biography

The Indian Hotels Company Limited, together with its subsidiaries, owns, operates, and manages hotels, palaces, and resorts in India and internationally. The company operates hotels under the Taj, SeleQtions, Vivanta, and Ginger brand names. It also operates spas, salons, and boutiques. The company operates approximately 149 hotels with 17,888 rooms. The Indian Hotels Company Limited was founded in 1899 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:59
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.