Indian Hotels Co (INDHOTEL)

FairStock Score: 63/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I put Indian Hotels through my Buffett-Graham filter: quality first, then price. The business has real merits. ROE is 17.98%, ROCE 17.21%, and Debt/Equity is only 0.19. Piotroski F-Score is 8/9 and Altman Z-Score is 4.96, so the balance sheet looks sturdy. Sales grew 18.04%, profit grew 37.86%, and the latest quarter produced ₹2,842 Cr of sales and ₹954 Cr of net profit. Five-year revenue CAGR of 13.31% is respectable, though hotels and resorts are Cyclical. Free cash flow is positive at ₹325 Cr, but against a ₹1.02 lakh Cr market cap it is modest. The dividend yield is only 0.45%, so I am not being paid much to wait. The moat is not obvious from these numbers alone; ROCE near 17% is good but not exceptional. The latest quarter is strong, but one quarter does not prove a durable moat. I prefer a margin of safety; here the opposite is true. The real problem is price. At ₹720, P/E is 47.84, P/B is 7.85, PEG is 6.35, and EV/EBITDA is 50.63. Graham Number is ₹157.83 and DCF intrinsic value is ₹88.18. The margin of safety is -322.64%, meaning the market price is far above cautious intrinsic value. I like the improving profits and low debt, but I would not pay this price. FairStock 63/100 STEADY argues for watching, not buying. I would wait for a much wider discount or much stronger free cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer