Oriental Hotels (ORIENTHOT)

FairStock Score: 21/100 — RISKY

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

Key Financials

AI Analysis

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

Oriental Hotels has the financial smell of a decent, conservatively financed cyclical—not the deep-value bargain I seek. Book value is ₹22.14, but the market pays ₹97.68, or 4.41 times book. With a P/E of 32.67, the Graham equation of P/E times P/B gives 144, far above 22.5; there is no margin of safety. The company is growing well right now: sales up 14.23% and profit up 39.12%. Yet hotels are capital-intensive and cyclical; a 9.45% ROCE tells me this is not a wonderfully returning business. ROE of 14.94% is respectable, helped by modest leverage (D/E 0.27), but returns on capital still sit below what I expect from a franchise with pricing power. Piotroski F-score of 7 suggests good short-term financial health, and promoter holding of 67.55% aligns owners with investors. Dividend yield of 0.49% gives little compensation while waiting. The latest quarter’s ₹139 Cr sales and ₹21 Cr profit imply a strong margin, but an annualized view still leaves the share richly valued. FairStock Score calls it risky at 34/100. I'd rather wait. A good business at a fair price is not enough; a cyclical hotel at 32 times earnings requires perfection. I will keep it on the watch list and buy only if price falls to a level where the downside is protected and the cyclical risks are reflected in the price.

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