Indian Hotels Co Ltd

NSE: INDHOTEL BSE: 500850

₹654.25

(2.01%)

Sun, 07 Jun 2026, 02:10 am

Market Cap932.56B

PE Ratio44.69

Dividend0.34

Consumer Services

Hotels/Resorts/Cruise lines

24.5K

Indian Hotels Co Analysis

Pros

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

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%).

Pros

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.

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).

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.

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.

Cons

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

Pros

Cons

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%).

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%).

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.

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.