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

Ventive Hospital

Leela Palaces Ho

Samhi Hotels

EIH

Chalet Hotels

Lemon Tree Hotel

I T D C

Indian Hotels Co

Juniper Hotels

Mahindra Holiday

ITC Hotels

Why is Chalet Hotels Ltd ?

Poor Management Efficiency with a low ROCE of 7.52%

The company has been able to generate a Return on Capital Employed (avg) of 7.52% 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 16.02 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 16.02 times
The company has been able to generate a Return on Equity (avg) of 7.00% signifying low profitability per unit of shareholders funds

With ROCE of 15.7, it has a Expensive valuation with a 3.3 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 -1.32%, its profits have risen by 499.7% ; the PEG ratio of the company is 0.1

31.92% of Promoter Shares are Pledged

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 9.41% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.32% returns

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, Low Return

Absolute

Risk Adjusted

Volatility

Chalet Hotels

-1.83%

-0.06

29.25%

Sensex

6.16%

0.52

11.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

45.17%

EBIT Growth (5y)

82.39%

EBIT to Interest (avg)

2.31

Debt to EBITDA (avg)

60.18

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.24

Tax Ratio

24.23%

Dividend Payout Ratio

Pledged Shares

31.92%

Institutional Holding

29.07%

ROCE (avg)

5.93%

ROE (avg)

7.00%

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

4.92

EV to EBIT

20.24

EV to EBITDA

16.42

EV to Capital Employed

3.35

EV to Sales

6.99

PEG Ratio

0.06

Dividend Yield

0.13%

ROCE (Latest)

15.68%

ROE (Latest)

16.94%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

23What is working for the Company

PAT(Latest six months)

At Rs 279.69 cr has Grown at 766.71%

NET SALES(Latest six months)

At Rs 1,316.99 cr has Grown at 57.75%

ROCE(HY)

Highest at 15.89%

DEBT-EQUITY RATIO(HY)

Lowest at 0.73 times

DEBTORS TURNOVER RATIO(HY)

Highest at 31.44 times

-5What is not working for the Company

NET SALES(Q)

At Rs 581.68 cr has Fallen at -10.8% (vs previous 4Q average

PAT(Q)

At Rs 124.85 cr has Fallen at -13.7% (vs previous 4Q average

PBT LESS OI(Q)

At Rs 160.72 cr has Fallen at -9.0% (vs previous 4Q average

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Here's what is working for Chalet Hotels

Debt-Equity Ratio - Half Yearly

Lowest at 0.73 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 31.44 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 581.68 cr has Fallen at -10.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 652.41 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 124.85 cr has Fallen at -13.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 144.60 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 160.72 cr has Fallen at -9.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 176.59 Cr

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)