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Chalet Hotels Ltd

NSE: CHALET BSE: 542399

895.65

(4.63)%

Tue, 03 Feb 2026, 11:10 am

Analysis

dividend

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Pros

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    Cons

    • Unable to evaluate Chalet Hotels's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Chalet Hotels's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

    • Cash flow for Chalet Hotels is expected to increase by more than 50% in 2 years time.
    • Chalet Hotels's earnings are expected to grow significantly at over 20% yearly.
    • Chalet Hotels's earnings growth is expected to exceed the India market average.
    • Chalet Hotels's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Chalet Hotels's revenue growth is expected to exceed the India market average.
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    Cons

    • Chalet Hotels is expected to be loss making next year.
    • Chalet Hotels's earnings are expected to decrease over the next 3 years.
    • Chalet Hotels's net income is expected to decrease over the next 2 years.
    • Chalet Hotels is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Hospitality industry average.
    • A decline in Chalet Hotels's performance (ROE) is expected over the next 3 years.
    • Chalet Hotels's revenue is expected to decrease over the next 2 years.
    • Chalet Hotels's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Chalet Hotels is profitable, therefore cash runway is not a concern.
    • Chalet Hotels is profitable, therefore cash runway is not a concern.
    • The level of debt compared to net worth has been reduced over the past 5 years (326.2% vs 125.8% today).
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    Cons

    • Chalet Hotels's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Debt is not well covered by operating cash flow (12.9%, less than 20% of total debt).
    • Debt is not covered by short term assets, assets are 0.3x debt.
    • Chalet Hotels's long term commitments exceed its cash and other short term assets.
    • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
    • Chalet Hotels's level of debt (125.8%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • Sanjay's remuneration is about average for companies of similar size in India.
    • Sanjay's compensation has increased in line with Chalet Hotels recently becoming profitable.
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    Cons

    • The average tenure for the Chalet Hotels board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Chalet Hotels has significant price volatility in the past 3 months.

      past

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      Pros

      • Chalet Hotels has delivered over 20% year on year earnings growth in the past 5 years.
      • Chalet Hotels has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Chalet Hotels has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
      • Chalet Hotels used its assets less efficiently than the IN Hospitality industry average last year based on Return on Assets.
      • Chalet Hotels has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Chalet Hotels has become profitable in the last year making it difficult to compare the IN Hospitality industry average.

      value

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      Pros

      • Chalet Hotels is good value based on expected growth next year.
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      Cons

      • Chalet Hotels is overvalued based on assets compared to the IN Hospitality industry average.
      • Chalet Hotels is overvalued based on earnings compared to the IN Hospitality industry average.
      • Chalet Hotels is overvalued based on earnings compared to the India market.
      • CHALET underperformed the Hospitality industry which returned -35.6% over the past year.
      • CHALET underperformed the Market in India which returned -14.5% over the past year.
      • NSEI:CHALET is up 2.9% underperforming the Hospitality industry which returned 11.5% over the past month.
      • NSEI:CHALET is up 2.9% underperforming the market in India which returned 8% over the past month.

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