I T D C (ITDC)

FairStock Score: 27/100 — RISKY

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

Key Financials

Strengths

• Zero debt with strong capital efficiency: ROCE 30.54% and ROE 18.36%
• Impressive growth: sales up 28.74% and profit up 35.11%, latest quarter at ₹185 Cr sales and ₹28 Cr PAT
• Piotroski F-score 7/9 indicates solid operating and financial health
• High promoter holding of 87.03% gives ownership stability

Concerns

• Very expensive valuation: P/E 56.30 and P/B 11.79 against book value of only ₹51.72
• Low shareholder yield: dividend yield just 0.55% and earnings yield roughly 1.78%
• PEG 1.76 suggests growth expectations are already priced in; any slowdown could cause sharp de-rating
• Promoter holding of 87.03% leaves a thin free float, which can add volatility and liquidity risk

AI Analysis

At ₹609.75, ITDC sells at 56.3 times trailing earnings and 11.79 times book. A business with zero debt and a 30.54% ROCE deserves respect, and the 18.36% ROE is far better than the average hotelier. Sales grew 28.74% and profit 35.11%, so the company is compounding at a healthy clip. The latest quarter—revenue ₹185 Cr and net profit ₹28 Cr—shows business is still running. Piotroski F-score of 7 out of 9 also tells me the balance sheet and operations are fundamentally sound. However, Graham taught me that a price is not an investment; the value is. Paying ₹609.75 against a book value of ₹51.72 means I am paying eleven and three-quarter times assets for a hotel company, and the dividend yield is only 0.55%. The earnings yield is just 1.78%—below many fixed-income alternatives. Even the PEG ratio at 1.76 suggests that growth is already largely priced in. With promoter holding at 87.03%, minority investors own a thin sliver; that can amplify volatility and liquidity concerns, not safety. This is a quality business with a strong balance sheet, but at this price, the margin of safety is missing. The FairStock Score of 41/100 appears consistent: mixed signals. If the growth story continues for years, shareholders may do well, but with a P/E above 56, Mr. Market is expecting near perfection. I would wait for a more reasonable price before committing new capital; in the meantime, watch whether the hotel cycle, competition, or costs dent those impressive growth numbers. The owl is wise because it sees; the investor is wise because he waits.

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