NSEI:INDHOTEL

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

Fundamentals

Proven track record with moderate growth potential.


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


Market Performance


7 Day Return

2.6%

NSEI:INDHOTEL

-1.0%

IN Hospitality

-2.1%

IN Market


1 Year Return

7.7%

NSEI:INDHOTEL

-29.2%

IN Hospitality

-14.7%

IN Market

INDHOTEL outperformed the Hospitality industry which returned -29.2% over the past year.

INDHOTEL outperformed the Market in India which returned -14.7% over the past year.


Share holder returns

INDHOTELIndustryMarket
7 Day2.6%-1.0%-2.1%
30 Day-5.7%-9.3%-3.9%
90 Day-11.0%-21.5%-10.1%
1 Year8.1%7.7%-28.9%-29.2%-12.9%-14.7%
3 Year13.1%4.9%-0.8%-3.3%17.7%11.5%
5 Year52.2%40.8%28.7%24.5%35.4%22.5%

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 based on future cash flows and its price relative to the stock market?

57.79x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Indian Hotels's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Indian Hotels's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Indian Hotels is overvalued based on earnings compared to the IN Hospitality industry average.

Indian Hotels is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Indian Hotels is poor value based on expected growth next year.


Price Based on Value of Assets

Indian Hotels is overvalued based on assets compared to the IN Hospitality industry average.


Next Steps

Future Growth

How is Indian Hotels expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Indian Hotels's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).

Indian Hotels's earnings are expected to grow significantly at over 20% yearly.

Indian Hotels's revenue growth is positive but not above the India market average.

Indian Hotels's earnings growth is expected to exceed the India market average.

Indian Hotels's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Indian Hotels is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Indian Hotels performed over the past 5 years?

72.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Indian Hotels has delivered over 20% year on year earnings growth in the past 5 years.

Indian Hotels's 1-year earnings growth exceeds its 5-year average (96.5% vs 72.3%)

Indian Hotels's earnings growth has exceeded the IN Hospitality industry average in the past year (96.5% vs 20.4%).


Return on Equity

Indian Hotels has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Indian Hotels used its assets less efficiently than the IN Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Indian Hotels has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Indian Hotels's financial position?


Financial Position Analysis

Indian Hotels's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Indian Hotels's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Indian Hotels's level of debt (45.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (126.2% vs 45.2% today).

Debt is well covered by operating cash flow (30.6%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

0.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Indian Hotels's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Indian Hotels's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


Next Steps

Management

What is the CEO of Indian Hotels's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Puneet Chhatwal (55yo)

1.8yrs

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

Puneet's remuneration is higher than average for companies of similar size in India.

Puneet's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

The tenure for the Indian Hotels management team is about average.


Board Age and Tenure

4.9yrs

Average Tenure

65.5yo

Average Age

The tenure for the Indian Hotels board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • S. Ananda (63yo)

    Corporate Chef of Premium Hotels & Executive Chef of Taj President Hotel - Mumbai

    • Tenure: 0.0yrs
    • Compensation: ₹6.92m
  • Maneck Patel (73yo)

    Senior Vice President of Business & International Consular Corps Relations

    • Tenure: 15.6yrs
  • Beejal Desai

    Senior VP of Legal

    • Tenure: 0.0yrs
    • Compensation: ₹15.90m
  • Suma Venkatesh (50yo)

    Executive Vice President of Real Estate & Development

    • Tenure: 4.0yrs
  • Maru Niyant (56yo)

    Vice President of Corporate Finance

    • Tenure: 0.0yrs
  • Puneet Chhatwal (55yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: ₹60.16m
  • Renu Basu (59yo)

    Senior Vice President of Global Sales & Marketing

    • Tenure: 0.0yrs
  • Giri Sanjeevi (56yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: ₹33.10m
  • P. V. Murthy

    Executive VP & Global Head of Human Resources

    • Tenure: 0.0yrs
  • Rajendra Misra (52yo)

    Executive VP & General Counsel

    • Tenure: 0.0yrs

Board Members

  • Deepak Parekh (75yo)

    Non-Executive Independent Director

    • Tenure: 19.3yrs
    • Compensation: ₹6.92m
  • Nadir Godrej (68yo)

    Non-Executive Independent Director

    • Tenure: 10.8yrs
    • Compensation: ₹6.54m
  • Venu Srinivasan (67yo)

    Non-Executive

    • Tenure: 1.0yrs
    • Compensation: ₹30.00k
  • Nasser Munjee (67yo)

    Additional Independent Director

    • Tenure: 0.0yrs
  • Mehernosh Kapadia (66yo)

    Non-Executive

    • Tenure: 1.0yrs
    • Compensation: ₹77.09m
  • Natarajan Chandrasekaran (56yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: ₹210.00k
  • Gautam Banerjee (65yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
  • Puneet Chhatwal (55yo)

    MD, CEO & Director

    • Tenure: 1.8yrs
    • Compensation: ₹60.16m
  • Vibha Rishi (59yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹4.44m
  • Ireena Vittal (51yo)

    Non-Executive Independent Director

    • Tenure: 6.0yrs
    • Compensation: ₹4.30m

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: INDHOTEL
  • Exchange: NSEI
  • Founded: 1899
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹161.620b
  • 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, SeleQtio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:52
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.