NSEI:CHALET

Stock Analysis Report

Executive Summary

Chalet Hotels Limited develops, owns, and manages hotels in India.


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

CHALET

2.7%

IN Hospitality

-0.07%

IN Market


1 Year Return

21.3%

CHALET

-7.3%

IN Hospitality

9.5%

IN Market

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

Return vs Market: CHALET exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

CHALETIndustryMarket
7 Day-0.3%2.7%-0.07%
30 Day0.09%0.2%-0.7%
90 Day-6.8%-1.4%3.2%
1 Year21.3%21.3%-1.7%-7.3%11.5%9.5%
3 Yearn/a35.7%22.1%23.6%16.7%
5 Yearn/a52.9%34.8%35.4%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

93.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHALET (₹340.2) is trading above our estimate of fair value (₹156.32)

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


Price To Earnings Ratio

PE vs Industry: CHALET is poor value based on its PE Ratio (93.6x) compared to the Hospitality industry average (18.9x).

PE vs Market: CHALET is poor value based on its PE Ratio (93.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: CHALET is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CHALET is overvalued based on its PB Ratio (4.8x) compared to the IN Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Chalet Hotels forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

46.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHALET's forecast earnings growth (46.2% per year) is above the savings rate (6.5%).

Earnings vs Market: CHALET's earnings (46.2% 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: CHALET's revenue (15.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: CHALET's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHALET's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Chalet Hotels performed over the past 5 years?

41.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHALET has high quality earnings.

Growing Profit Margin: CHALET became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CHALET has become profitable over the past 5 years, growing earnings by 41.8% per year.

Accelerating Growth: CHALET has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CHALET has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (27.3%).


Return on Equity

High ROE: CHALET's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chalet Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: CHALET's short term assets (₹5.9B) do not cover its short term liabilities (₹7.1B).

Long Term Liabilities: CHALET's short term assets (₹5.9B) do not cover its long term liabilities (₹13.8B).


Debt to Equity History and Analysis

Debt Level: CHALET's debt to equity ratio (107.5%) is considered high.

Reducing Debt: CHALET's debt to equity ratio has reduced from 310.3% to 107.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CHALET's debt is not covered by short term assets (assets are 0.4x 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: CHALET is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CHALET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CHALET's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CHALET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CHALET's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHALET's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Sanjay Sethi (54yo)

2yrs

Tenure

₹32,837,240

Compensation

Mr. Sanjay Sethi serves as Chief Executive Officer of Chalet Hotels Pvt Ltd and Managing Director of Chalet Hotels Pvt Ltd at K Raheja Corp. Private Limited. Mr. Sethi is Managing Director and Chief Execut ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD457.13K) is about average for companies of similar size in the Indian market ($USD406.80K).

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Sanjay Sethi
MD, CEO & Director2yrs₹32.84mno data
Rajeev Newar
CFO & Executive Director2.5yrs₹19.10mno data
Arthur De Haast
Non-Executive Independent Director2.5yrs₹150.00kno data
Ravi Raheja
Non-Executive Director24.4yrs₹695.00k5.04% 3.5b
Neel Raheja
Non-Executive Director23.2yrs₹480.00k5.04% 3.5b
Hetal Gandhi
Independent Chairman of the Board1.7yrs₹685.00kno data
Radhika Piramal
Non-Executive Independent Director1.7yrs₹200.00kno data
Joseph Conrad D'Souza
Non-Executive Independent Director7.9yrs₹705.00k0.00031% 216.2k

2.5yrs

Average Tenure

52yo

Average Age

Experienced Board: CHALET's board of directors are not considered experienced ( 2.5 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 been diluted in the past year, with total shares outstanding growing by 17.3%.


Top Shareholders

Company Information

Chalet Hotels Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chalet Hotels Limited
  • Ticker: CHALET
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹69.749b
  • Shares outstanding: 205.02m
  • Website: https://www.chalethotels.com

Number of Employees


Location

  • Chalet Hotels Limited
  • Raheja Tower
  • 4th Floor, Block G
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
542399BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2019
CHALETNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2019

Biography

Chalet Hotels Limited develops, owns, and manages hotels in India. Its hotel platform comprises five operating hotels, including a hotel with a co-located serviced residence, located in Mumbai, Hyderabad, and Bengaluru representing 2,328 keys under the JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance, and Four Points by Sheraton brands. The company is also involved in the commercial and retail operations, and real estate development. Chalet Hotels Limited was incorporated in 1986 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 13:29
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.