ITC Hotels
ITC Hotels
Leisure ServicesKey Fundamentals
SmallcapHotels & ResortsLeisure ServicesTapetide Score
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Key Insights
Strengths
1- Company is almost debt free.
Weaknesses
2- Stock is trading at 2.75 times its book value
- Company has a low return on equity of 6.65% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoITC Hotels Ltd, demerged from ITC Ltd, operates as a standalone leisure services company with a market cap of approximately ₹31,992 Cr, trading at a PE of 37x and a price-to-book of 2.75x. TTM sales growth stands at 16% and profit growth at 35%, while the 3-year average ROE remains subdued at around 7%. The company carries near-zero debt but has seen its stock decline 38% over the past year.
- The company is virtually debt-free, giving it significant financial flexibility and insulation from rising interest rate cycles — debt-to-equity is negligible.
- TTM compounded profit growth of 35% indicates a sharp recovery in earnings, likely driven by improved occupancy and average room rates post-pandemic.
- TTM compounded sales growth of 16% reflects healthy top-line momentum in a sector benefiting from rising domestic and inbound tourism demand.
- Last year ROE improved to 8% from a 3-year average of 7%, suggesting an improving trend in capital efficiency as the hotel portfolio matures.
- At a market cap of ~₹31,992 Cr, ITC Hotels is one of India's largest listed pure-play luxury hospitality companies, offering scale advantages in brand, procurement, and distribution.
- The 38% stock price correction over the past year compresses valuation from earlier highs, potentially offering a more reasonable entry relative to its own recent trading history.
- A dividend yield of 0.65% signals management's willingness to return cash to shareholders even as a newly listed standalone entity.
- The PE ratio of 37x is elevated for a hospitality company with a 3-year average ROE of only 7%, implying the market is pricing in significant future growth that may not materialize.
- The stock has declined 38% over the past one year, indicating sustained selling pressure and negative momentum since the demerger listing.
- Three-year average ROE of approximately 6.65-7% is well below the cost of equity for most investors, suggesting the business is not generating adequate returns on capital deployed.
- Trading at 2.75x book value while delivering sub-8% ROE represents a disconnect — at this ROE level, the stock arguably warrants a valuation closer to book value.
- Limited historical data is available as a standalone listed entity — 5-year and 10-year CAGR figures for sales, profit, and stock returns are unavailable, making long-term trend analysis difficult.
- The dividend yield of 0.65% offers minimal income cushion against capital losses, providing little downside protection during market corrections.
- The hospitality sector is inherently cyclical and sensitive to macroeconomic slowdowns, geopolitical disruptions, and pandemic-related risks that can sharply compress occupancy and pricing.
- As a newly demerged entity, ITC Hotels no longer benefits from the cash flow diversification of ITC Ltd's FMCG, cigarettes, and agribusiness segments, increasing standalone business risk.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Full ownership of GHK Hospitality Sep 1
ITC Hotels acquired complete ownership of GHK Hospitality & Infrastructures for ₹155 crore, consolidating full control over the entity.
- Attending Elara investor conference Aug 26
ITC Hotels will participate in the Ashwamedh - Elara India Dialogue 2026 on September 2, 2026 in Mumbai for one-on-one and group investor meetings.
TL;DR: ITC Hotels is pursuing inorganic growth with the ₹155 crore acquisition of GHK Hospitality for full ownership, signaling consolidation intent. No headwinds are visible in recent news flow. Active investor engagement at the upcoming Elara conference suggests management focus on market communication. The near-term outlook appears steady with a growth-oriented posture.
Quarterly Results
| Particulars | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 706 | 778 | 1,015 | 1,061 | 816 | 839 | 1,231 | 1,254 | 936 |
| Expenses | 500 | 566 | 635 | 648 | 571 | 594 | 764 | 787 | 644 |
| Operating Profit | 206 | 212 | 381 | 412 | 245 | 246 | 467 | 466 | 292 |
| OPM % | 29% | 27% | 37% | 39% | 30% | 29% | 38% | 37% | 31% |
| Other Income | 14 | 7 | 19 | 43 | 48 | 49 | -34 | 60 | 62 |
| Interest | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Depreciation | 95 | 104 | 104 | 100 | 102 | 104 | 104 | 106 | 104 |
| PBT | 123 | 114 | 294 | 354 | 189 | 189 | 327 | 418 | 248 |
| Tax % | 29% | 33% | 27% | 27% | 29% | 29% | 28% | 24% | 27% |
| Net Profit | 87 | 77 | 216 | 258 | 134 | 133 | 237 | 317 | 182 |
| EPS in Rs | — | — | — | 1.23 | 0.64 | 0.64 | 1.13 | 1.52 | 0.87 |
Profit & Loss
| Particulars | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|
| Sales | 2,224 | 3,560 | 4,139 | 4,260 |
| Expenses | 1,454 | 2,307 | 2,660 | 2,788 |
| Operating Profit | 771 | 1,253 | 1,480 | 1,471 |
| OPM % | 35% | 35% | 36% | 35% |
| Other Income | 16 | 77 | 115 | 138 |
| Interest | 20 | 44 | 55 | 8 |
| Depreciation | 201 | 402 | 417 | 418 |
| PBT | 565 | 884 | 1,123 | 1,182 |
| Tax % | 25% | 28% | 27% | — |
| Net Profit | 424 | 638 | 821 | 869 |
| EPS in Rs | — | 3.05 | 3.92 | 4.16 |
| Div. Payout % | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Equity Capital | 83 | 208 | 208 |
| Reserves | 8,415 | 10,484 | 11,450 |
| Borrowings | 74 | 73 | 74 |
| Other Liabilities | 1,617 | 1,707 | 1,748 |
| Total Liabilities | 10,188 | 12,472 | 13,480 |
| Fixed Assets | 6,436 | 8,189 | 8,089 |
| CWIP | 1,768 | 158 | 207 |
| Investments | 204 | 676 | 1,956 |
| Other Assets | 1,780 | 3,449 | 3,229 |
| Total Assets | 10,188 | 12,472 | 13,480 |
Cash Flow
| Particulars | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Operating | 672 | 801 | 1,110 |
| Investing | -753 | -2,203 | -1,174 |
| Financing | 127 | 1,430 | 19 |
| Net Cash Flow | 47 | 27 | -46 |
| Free Cash Flow | 22 | 419 | 701 |
| CFO/OP | 116 | 81 | 95 |
Ratios
| Particulars | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Debtor Days | 24 | 21 | 20 |
| Cash Conversion Cycle | 24 | 21 | 20 |
| Working Capital Days | 48 | 48 | 43 |
| ROCE % | — | 10% | 11% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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56 extracted metrics + investor summaries across FY23–FY27.
Documents
Frequently Asked Questions about ITC Hotels
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Company Information
ITC Hotels is an Indian hospitality company that operates and manages hotels, with over 200 hotels. It has a franchise agreement to operate most of its hotels as part of The Luxury Collection of Marriott International. It operates hotels across 90+ destinations under brands like ITC Hotels, Mementos, Epiq Collection Storii, Welcomhotel, Fortune, and Welcome Heritage.[1][2]
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