Stock Price Movement and Market Context
On the day in question, Indian Hotels Co Ltd touched an intraday low of Rs.628.55, representing a 6.81% drop from the previous close. This decline came despite the Sensex opening 119.19 points higher, only to reverse sharply and close down by 1,076.73 points, or 1.16%, at 81,312.24. The Sensex itself is trading below its 50-day moving average, signalling a cautious market environment, although the 50DMA remains above the 200DMA, indicating some underlying medium-term support.
Indian Hotels Co Ltd’s stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the downward momentum. The stock’s 52-week high was Rs.858.85, highlighting the extent of the recent decline.
Financial Performance and Valuation Metrics
The company’s recent quarterly results have contributed to the subdued sentiment. For the quarter ended September 2025, profit before tax (PBT) stood at Rs.369.35 crore, down 30.9% compared to the previous four-quarter average. Similarly, profit after tax (PAT) declined by 33.1% to Rs.284.92 crore, while net sales fell 7.5% to Rs.2,040.89 crore over the same period.
Despite these declines, Indian Hotels Co Ltd maintains a return on equity (ROE) of 14.6%, which is respectable within the Hotels & Resorts sector. However, the stock’s valuation remains elevated, trading at a price-to-book value of 8.3, which is considered very expensive relative to its peers’ historical averages. The company’s PEG ratio stands at 3, reflecting a higher price relative to earnings growth.
Over the past year, the stock has generated a negative return of 12.99%, underperforming the Sensex, which gained 5.93% during the same period. This underperformance is notable given that the company’s profits have risen by 18.9% over the last year, suggesting that market valuation has not kept pace with earnings growth.
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Sector Position and Market Capitalisation
Indian Hotels Co Ltd is the largest company in the Hotels & Resorts sector by market capitalisation, valued at approximately Rs.96,011 crore. It accounts for 37.66% of the sector’s total market cap, underscoring its dominant position. The company’s annual sales of Rs.9,040.16 crore represent 27.52% of the industry’s total revenue, further highlighting its scale.
Institutional investors hold a significant stake of 45.87%, indicating strong backing from entities with extensive analytical resources. This level of institutional ownership often reflects confidence in the company’s fundamentals despite recent price volatility.
Long-Term Growth Trends
While the stock has faced recent headwinds, Indian Hotels Co Ltd has demonstrated healthy long-term growth. Net sales have increased at an annualised rate of 26.09%, and operating profit has expanded by 71.10% over the same period. These figures suggest that the company’s core business continues to grow robustly despite short-term fluctuations in stock price and quarterly earnings.
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Recent Trend Reversal and Sector Comparison
After four consecutive days of gains, Indian Hotels Co Ltd’s stock price reversed sharply, signalling a shift in market sentiment. The stock’s underperformance relative to its sector by 6.21% on the day reflects broader pressures within the Hotels & Resorts industry, which has been impacted by fluctuating demand and macroeconomic factors.
Compared to the broader BSE500 index, which has delivered a 6.34% return over the past year, Indian Hotels Co Ltd’s negative 12.99% return highlights its relative weakness. This divergence suggests that while the overall market has shown resilience, the company’s stock has faced specific valuation and performance challenges.
Valuation Considerations
The stock’s elevated price-to-book ratio of 8.3 indicates that investors are paying a premium relative to the company’s net asset value. This premium is not fully supported by recent earnings trends, as quarterly profits have declined compared to previous averages. The PEG ratio of 3 further suggests that the stock’s price growth has outpaced earnings growth, which may be a factor in the recent price correction.
Despite these valuation concerns, the company’s ROE of 14.6% remains solid, reflecting efficient use of equity capital. However, the gap between valuation and earnings performance has contributed to the stock’s downward trajectory.
Summary of Key Metrics
Indian Hotels Co Ltd’s current Mojo Score is 30.0, with a Mojo Grade of Sell, downgraded from Hold on 7 Jan 2026. The market cap grade is 1, reflecting its large size but also the valuation pressures it faces. The stock’s day change of -1.73% and intraday low of Rs.628.55 underscore the recent volatility and investor caution.
Overall, Indian Hotels Co Ltd’s stock has experienced a notable decline to its 52-week low amid a challenging market backdrop and mixed financial results. While the company maintains strong sector leadership and long-term growth trends, recent earnings softness and valuation concerns have weighed on the share price.
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