Chalet Hotels Ltd (CHALET) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Indian Hotels Co

I T D C

EIH

Leela Palaces Ho

Samhi Hotels

Lemon Tree Hotel

Ventive Hospital

ITC Hotels

Juniper Hotels

Chalet Hotels

Mahindra Holiday

Why is Chalet Hotels Ltd ?

Poor Management Efficiency with a low ROCE of 8.87%

The company has been able to generate a Return on Capital Employed (avg) of 8.87% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.99 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.99 times
The company has been able to generate a Return on Equity (avg) of 9.36% signifying low profitability per unit of shareholders funds
PAT(Q) At Rs 92.55 cr has Fallen at -42.7% (vs previous 4Q average)
NET SALES(Q) Lowest at Rs 512.27 cr
PBDIT(Q) Lowest at Rs 234.01 cr.

With ROCE of 16.7, it has a Expensive valuation with a 3.5 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.79%, its profits have risen by 87.8% ; the PEG ratio of the company is 0.4

31.91% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Chalet Hotels for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Chalet Hotels

-5.01%

-0.15

28.84%

Sensex

-2.64%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

50.30%

EBIT Growth (5y)

55.77%

EBIT to Interest (avg)

2.89

Debt to EBITDA (avg)

12.51

Net Debt to Equity (avg)

0.55

Sales to Capital Employed (avg)

0.28

Tax Ratio

22.64%

Dividend Payout Ratio

Pledged Shares

31.91%

Institutional Holding

29.26%

ROCE (avg)

7.93%

ROE (avg)

9.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.88

EV to EBIT

24.28

EV to EBITDA

18.87

EV to Capital Employed

3.50

EV to Sales

8.41

PEG Ratio

0.39

Dividend Yield

0.12%

ROCE (Latest)

16.67%

ROE (Latest)

17.47%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

ROCE(HY)

Highest at 16.49%

INVENTORY TURNOVER RATIO(HY)

Highest at 10.28 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.64 times

DEBTORS TURNOVER RATIO(HY)

Highest at 40.30 times

-19What is not working for the Company

PAT(Q)

At Rs 92.55 cr has Fallen at -42.7% (vs previous 4Q average

NET SALES(Q)

Lowest at Rs 512.27 cr

PBDIT(Q)

Lowest at Rs 234.01 cr.

PBT LESS OI(Q)

Lowest at Rs 133.34 cr.

EPS(Q)

Lowest at Rs 3.93

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Here's what is working for Chalet Hotels

Inventory Turnover Ratio- Half Yearly

Highest at 10.28 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debt-Equity Ratio - Half Yearly

Lowest at 0.64 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 40.30 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Chalet Hotels

Net Sales - Quarterly

At Rs 512.27 cr has Fallen at -26.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 692.44 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 133.34 cr has Fallen at -31.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 194.25 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 92.55 cr has Fallen at -42.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 161.47 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 512.27 cr and Fallen

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 234.01 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 133.34 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 3.93

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)