CHL Faces Financial Struggles Amidst Market Volatility and Declining Performance Metrics

CHL, a microcap player in the Hotels & Resorts industry, has recently undergone a financial trend adjustment reflecting a challenging performance in the quarter ending September 2025. The company's financial metrics indicate significant struggles, with a reported profit after tax of Rs -12.04 crore, marking a drastic decline compared to the previous four-quarter average.
Key indicators reveal that CHL's operating profit to interest ratio stands at a concerning -1.64 times, while net sales have decreased to Rs 31.65 crore, down by 9.6% from prior averages. The company also reported its lowest PBDIT at Rs -8.45 crore and an operating profit to net sales ratio of -26.70%. Furthermore, the profit before tax less other income reached Rs -17.21 crore, and earnings per share fell to Rs -2.20.

In terms of market performance, CHL's stock has faced downward pressure, with a year-to-date return of -16.83%, contrasting sharply with the Sensex's positive return of 6.91% over the same period. However, over a longer horizon, the company has shown resilience with a three-year return of 100.51% and a five-year return of 439.48%, significantly outpacing the Sensex. This juxtaposition highlights the volatility and challenges CHL faces in the current market landscape.