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Indian Hotels Co Ltd

NSE: INDHOTEL BSE: 500850

681.50

(2.65)%

Tue, 03 Feb 2026, 11:10 am

Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (6x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Indian Hotels's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Indian Hotels's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

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    Cons

    • Cash flow for Indian Hotels is expected to increase but not above the 50% threshold in 2 years time.
    • Indian Hotels's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
    • Indian Hotels's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
    • Indian Hotels's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
    • Indian Hotels is expected to be loss making next year.
    • Indian Hotels's net income is expected to decrease over the next 2 years.
    • Indian 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 Indian Hotels's performance (ROE) is expected over the next 3 years.
    • Indian Hotels's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Indian Hotels's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
    • Indian Hotels's revenue growth is positive but not above the India market average.

    health

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    Pros

    • Indian Hotels is profitable, therefore cash runway is not a concern.
    • Indian Hotels is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (35.9%, greater than 20% of total debt).
    • The level of debt compared to net worth has been reduced over the past 5 years (171% vs 44.8% today).
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    Cons

    • Indian Hotels's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Debt is not covered by short term assets, assets are 0.6x debt.
    • Indian 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 1.8x annual interest expense, ideally 3x coverage).
    • Indian Hotels's level of debt (44.8%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • Puneet's remuneration is about 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%.
    • The tenure for the Indian Hotels management team is about average.
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    Cons

    • The average tenure for the Indian 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

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

      past

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      Pros

      • Indian Hotels has delivered over 20% year on year earnings growth in the past 5 years.
      • Indian Hotels has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Indian Hotels's earnings growth has exceeded the IN Hospitality industry average in the past year (23.6% vs 21.6%).
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      Cons

      • Indian Hotels's 1-year earnings growth is less than its 5-year average (23.6% vs 73.8%)
      • Indian Hotels used its assets less efficiently than the IN Hospitality industry average last year based on Return on Assets.
      • Indian Hotels has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • BSE:500850 is up 24% outperforming the Hospitality industry which returned 11.5% over the past month.
      • BSE:500850 is up 24% outperforming the market in India which returned 8% over the past month.
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      Cons

      • 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%).
      • Indian Hotels is overvalued based on assets compared to the IN Hospitality industry average.
      • Indian Hotels earnings are not expected to grow next year, we can't assess if its growth is good value.
      • 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.
      • 500850 underperformed the Hospitality industry which returned -35.6% over the past year.
      • 500850 underperformed the Market in India which returned -14.5% over the past year.

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