Oriental Hotels (ORIENTHOT)
CyclicalFairStock Score: 21/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹124.2 |
| Market Cap | ₹2,218.2 Cr |
| P/E Ratio | 33.3 |
| ROCE | 9.45% |
| ROE | 14.94% |
| Dividend Yield | 0.52% |
| Profit Growth | -18.9% |
| Debt/Equity | 0.17 |
| Sales Growth | 3.6% |
| Promoter Holding | 67.55% |
| 52-Week Range | ₹80 — ₹148.8 |
| Sector | Leisure Services |
| Book Value | ₹42.67 |
Strengths
- Piotroski F-score of 7/9 indicates sound near-term financial health.
- Promoter holding of 67.55% ensures strong insider alignment with minority shareholders.
- Low debt/equity of 0.27 provides balance-sheet flexibility.
- Profit growth of 39.12% on sales growth of 14.23% shows strong current operating performance.
- Latest quarter net profit margin of roughly 15.1% is respectable.
Concerns
- Valuation is stretched: P/E of 32.67 and P/B of 4.41 offer no margin of safety.
- ROCE of only 9.45% suggests a capital-intensive business without exceptional economic moat.
- Dividend yield of 0.49% is minimal, so returns depend entirely on price appreciation.
- FairStock Score of 34/100 flags risk; hotel earnings are cyclical and current profit growth may normalize.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer