ITC Hotels

Why is ITC Hotels Ltd falling/rising?

As of 08-Aug, ITC Hotels Ltd's stock price is at 170.95, reflecting a slight decline after five days of gains. The stock's drop is due to poor annual performance, disappointing quarterly results, and weak long-term growth prospects, despite some positive indicators.

As of 08-Aug, ITC Hotels Ltd's stock price is currently at 170.95, reflecting a slight decline of 0.15 (-0.09%). The stock has shown a trend reversal, having fallen after five consecutive days of gains. This recent drop can be attributed to several factors. <BR><BR>Firstly, the company's performance over the past year has been poor, with a significant decline of 27.19%, which is starkly contrasted by the broader market's positive return of 4.11% during the same period. Additionally, the company's recent quarterly results have been disappointing, with net sales falling by 9.6% compared to the previous four-quarter average, and both profit before tax and profit after tax showing declines of 25.0% and 17.6%, respectively.<BR><BR>Despite some positive indicators, such as being net-debt free and having high institutional holdings at 35.62%, the overall long-term growth prospects appear weak. The company's net sales have only grown at an annual rate of 9.30% over the last five years, and its return on equity (ROE) stands at a modest 7.5, contributing to a perception of an expensive valuation with a price-to-book ratio of 3.1.<BR><BR>In summary, the combination of disappointing financial results, underperformance relative to the market, and concerns over long-term growth prospects are contributing to the stock's decline.

Which are the latest news on ITC Hotels?

Should I buy, sell or hold ITC Hotels Ltd?

Are ITC Hotels Ltd latest results good or bad?

ITC Hotels Ltd's latest results show year-on-year growth in net profit and revenue, indicating a recovery trend; however, there are significant quarter-on-quarter declines due to seasonal challenges in the hospitality sector, raising concerns about capital efficiency and operating margins. Overall, the results are mixed, with positive annual growth but concerning sequential performance.

ITC Hotels Ltd's latest results present a mixed picture. For Q1 FY27, the company reported a net profit of ₹180.25 crore, which is a significant increase of 35.42% year-on-year, indicating a positive recovery trend. However, this figure represents a sharp decline of 42.94% compared to the previous quarter, reflecting the seasonal challenges typical in the hospitality sector during the April-June period.<BR><BR>Revenue for the same quarter stood at ₹936.02 crore, marking a year-on-year growth of 14.77%, but again, a substantial decrease of 25.34% from the previous quarter. This aligns with the seasonal nature of the industry, where the summer months generally see lower occupancy rates and average room rates.<BR><BR>The operating margin also saw a decline, dropping to 31.47%, down 608 basis points from the previous quarter, although it improved slightly from the same quarter last year. The return on equity (ROE) is currently at 7.63%, which is below the industry average, highlighting concerns about capital efficiency.<BR><BR>In summary, while the year-on-year growth in profit and revenue suggests a recovery trajectory, the sequential declines and challenges in maintaining margins indicate that the company is facing significant seasonal headwinds. Overall, the results can be seen as good in terms of year-on-year growth but concerning when looking at the quarter-on-quarter performance.

When is the next results date for ITC Hotels Ltd?

The next results date for ITC Hotels Ltd is 16 July 2026.

The next results date for ITC Hotels Ltd is scheduled for 16 July 2026.

What does ITC Hotels do?

ITC Hotels Ltd operates in the Hotels & Resorts industry and was incorporated in 2023. As of March 2026, it reported net sales of 1,254 Cr and a net profit of 316 Cr, with a market cap of INR 31,911 Cr.

Overview:<BR>ITC Hotels Ltd operates in the Hotels & Resorts industry and is categorized as a Mid Cap company.<BR><BR>History:<BR>ITC Hotels Limited was incorporated as a Public Limited Company in the year 2023, with a Certificate of Incorporation issued on July 28, 2023. The latest quarterly results reported are for March 2026, showing sales and profit figures.<BR><BR>Financial Snapshot:<BR>Net Sales: 1,254 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 316 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 31,911 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>P/E: 36.00 <BR>Industry P/E: 35 <BR>Dividend Yield: 0.66% <BR>Debt Equity: -0.13 <BR>Return on Equity: 7.63% <BR>Price to Book: 2.76 <BR><BR>Contact Details:<BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

How big is ITC Hotels?

As of 10th June, ITC Hotels Ltd has a market capitalization of 31,911.00 Cr, with recent net sales of 4,139.40 Cr and a net profit of 816.89 Cr.

As of 10th June, ITC Hotels Ltd has a market capitalization of 31,911.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, ITC Hotels reported Net Sales of 4,139.40 Cr and a Net Profit of 816.89 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 10,692.17 Cr and Total Assets of 12,472.39 Cr.

Who are the peers of the ITC Hotels?

ITC Hotels' peers include Indian Hotels Co, EIH, Chalet Hotels, and Lemon Tree Hotel, among others. While Indian Hotels Co and EIH show excellent management and growth, ITC Hotels has average management risk and below-average growth, with a 1-year return of -30.62%.

Peers: The peers of ITC Hotels are Indian Hotels Co, EIH, Chalet Hotels, Ventive Hospital, Leela Palaces Ho, Lemon Tree Hotel, I T D C, Mahindra Holiday, Juniper Hotels, and Samhi Hotels.<BR><BR>Quality Snapshot: Excellent management risk is observed at Indian Hotels Co and EIH, while Average management risk is found at ITC Hotels, Lemon Tree Hotel, I T D C, Mahindra Holiday, Juniper Hotels, and the rest. Growth is Excellent for Indian Hotels Co, EIH, Chalet Hotels, Ventive Hospital, and Lemon Tree Hotel, while ITC Hotels, Leela Palaces Ho, I T D C, and Juniper Hotels show Below Average growth, and the rest have Average growth. Excellent capital structure is noted at Indian Hotels Co, EIH, ITC Hotels, and I T D C, while Below Average capital structure is found at Chalet Hotels, Ventive Hospital, Leela Palaces Ho, Lemon Tree Hotel, Mahindra Holiday, Juniper Hotels, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is I T D C at -7.14%, while Juniper Hotels has the lowest at -39.53%. ITC Hotels' 1-year return of -30.62% is better than Juniper Hotels but worse than I T D C. Additionally, peers with negative six-month returns include ITC Hotels, EIH, Chalet Hotels, Ventive Hospital, Lemon Tree Hotel, Mahindra Holiday, Juniper Hotels, and Samhi Hotels.

How has been the historical performance of ITC Hotels?

ITC Hotels reported significant growth for the fiscal year ending March 2025, with total operating income of ₹3,559.81 crore, a profit after tax of ₹621.77 crore, and an operating profit margin of 34.34%. Shareholder's funds increased to ₹10,692.17 crore, reflecting strong financial performance and asset growth.

Answer:<BR>The historical performance of ITC Hotels for the fiscal year ending March 2025 shows significant growth in various financial metrics.<BR><BR>Breakdown:<BR>In March 2025, ITC Hotels reported total operating income of 3,559.81 crore, with a total expenditure (excluding depreciation) of 2,348.93 crore, leading to an operating profit (PBDIT) of 1,277.18 crore. After accounting for interest and depreciation, the profit before tax stood at 868.19 crore, resulting in a profit after tax of 621.77 crore. The consolidated net profit was recorded at 634.57 crore, with earnings per share (EPS) at 3.05. The operating profit margin was 34.34%, and the profit after tax margin was 18.08%. On the balance sheet, shareholder's funds increased to 10,692.17 crore from 8,497.85 crore in the previous year, while total liabilities rose to 12,472.39 crore from 10,188.03 crore. The total current assets also saw a significant increase, reaching 3,456.96 crore compared to 1,546.80 crore in March 2024. Cash flow from operating activities improved to 803.00 crore, while cash flow from investing activities showed a larger outflow of 2,205.00 crore. Overall, ITC Hotels demonstrated strong financial performance with notable increases in revenue, profit, and assets.

Is ITC Hotels overvalued or undervalued?

As of July 23, 2025, ITC Hotels is considered very expensive with a PE ratio of 72.55, significantly higher than its peers, indicating overvaluation despite a recent strong stock performance.

As of 23 July 2025, the valuation grade for ITC Hotels has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 72.55, an EV to EBITDA ratio of 41.40, and a Price to Book Value of 4.59. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its sustainability.<BR><BR>In comparison to its peers, ITC Hotels' PE ratio is notably higher than that of Indian Hotels Co, which stands at 62.97, and EIH at 31.5. This disparity highlights the overvaluation of ITC Hotels within the industry. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-month return of 14.95% compared to the Sensex's 1.01%, although this does not mitigate the overall valuation concerns.

Who are the top shareholders of the ITC Hotels?

The top shareholders of ITC Hotels include ITC Limited with 39.88%, foreign institutional investors at 25.37%, and individual investors holding 10.7%. There are no pledged promoter holdings, and the highest public shareholder is Tobacco Manufacturers (India) Limited, which holds 0%.

The top shareholders of ITC Hotels are primarily its promoters, with ITC Limited holding the largest share at 39.88%. Additionally, foreign institutional investors (FIIs) hold 25.37% of the shares, while mutual funds collectively account for 3.47% through 30 different schemes. Individual investors have a stake of 10.7%. Notably, there are no pledged promoter holdings, and the highest public shareholder is Tobacco Manufacturers (India) Limited, which holds 0%.

Has ITC Hotels declared dividend?

No Dividend History Available