IHCL Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹1,22,501 crore, a debt-to-equity ratio of 0.29, and a return on equity (ROE) of 14.3%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Table of Contents
Overview of the Hospitality Sector
The hospitality sector is a key driver of global economies, encompassing a wide range of services such as accommodation, food and beverage, travel, and tourism. It plays a pivotal role in employment, contributing significantly to GDP, especially in tourist-heavy regions.
As consumer preferences evolve, the hospitality industry focuses on personalized experiences, sustainability, and digital transformation. Post-pandemic recovery has accelerated industry growth, with increasing demand for domestic and international travel. The sector’s future is defined by innovation, eco-conscious practices, and adapting to changing traveler behavior and technology advancements.
Financial Analysis of Indian Hotels Company Limited
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 6,769 | 5,810 | 3,056 | 1,575 |
| Expenses | 4,612 | 4,005 | 2,651 | 1,937 |
| Operating Profit | 2,157 | 1,805 | 404.75 | -361.76 |
| OPM % | 31.03 | 30.33 | 12.6 | -20.79 |
| Other Income | 182.92 | 142.19 | 170.78 | 324.67 |
| EBITDA | 2,340 | 1,943 | 559.91 | -197.04 |
| Interest | 220.22 | 236.05 | 427.66 | 402.82 |
| Depreciation | 454.3 | 416.06 | 406.05 | 409.63 |
| Profit Before Tax | 1,666 | 1,295 | -258.18 | -849.54 |
| Tax % | 27.86 | 24.97 | 13.86 | 18.28 |
| Net Profit | 1,330 | 1,053 | -264.97 | -795.63 |
| EPS | 8.85 | 7.06 | -1.74 | -6.06 |
| Dividend Payout % | 19.77 | 14.16 | -22.99 | -6.6 |
* Consolidated Figures in Rs. Crores
IHCL Company Metrics
Indian Hotels Company Limited’s financial metrics demonstrate strong recovery: In FY24, sales reached ₹6,769 crore, up from ₹5,810 crore in FY23 and ₹3,056 crore in FY22. Operating profit surged to ₹2,157 crore, showcasing robust operational and financial performance post-pandemic.
Sales Growth: Sales grew by 16.5% to ₹6,769 crore in FY24, compared to ₹5,810 crore in FY23. FY23 saw a significant 90.14% growth from ₹3,056 crore in FY22, reflecting a recovery in the hospitality industry and increased demand.
Expense Trends: Expenses rose to ₹4,612 crore in FY24, a 15.16% increase from ₹4,005 crore in FY23. FY23 expenses increased by 51.08% compared to ₹2,651 crore in FY22, driven by higher operational activity and industry revival.
Operating Profit & Margins: Operating profit rose to ₹2,157 crore in FY24, a 19.5% increase from ₹1,805 crore in FY23. OPM improved to 31.03% in FY24 from 30.33% in FY23, significantly higher than 12.6% in FY22, showcasing enhanced efficiency.
Profitability Indicators: Net profit increased to ₹1,330 crore in FY24, a 26.33% rise from ₹1,053 crore in FY23. FY22 recorded a net loss of ₹264.97 crore. Earnings per share (EPS) grew to ₹8.85 in FY24 from ₹7.06 in FY23.
Taxation & Dividend: The tax rate increased to 27.86% in FY24 from 24.97% in FY23. Dividend payout rose to 19.77% in FY24, up from 14.16% in FY23, reflecting shareholder returns, with FY22 marking a recovery from negative payout trends.
Key Financial Metrics: EBITDA increased to ₹2,340 crore in FY24 from ₹1,943 crore in FY23 and ₹559.91 crore in FY22. Interest expenses declined to ₹220.22 crore in FY24, while depreciation rose slightly to ₹454.3 crore, indicating stable financial management.
IHCL Stock Performance
Indian Hotels Company (IHCL) has demonstrated impressive stock performance, with a 96.3% return over the past year, 69.5% over three years, and 43.7% over five years. This reflects the company’s strong recovery and growth in the hospitality sector.
| Duration | Return |
| 1 year | 96.3 % |
| 3 years | 69.5 % |
| 5 years | 43.7 % |
IHCL Shareholding Pattern
The shareholding pattern of Indian Hotels Company (IHCL) shows stability with promoters holding 38.12% in March 2024. FIIs hold 24.47%, while DIIs have 20.65%. The public’s shareholding is 16.63%, reflecting growing investor confidence with increasing shareholder numbers over the past few years.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 38.19% | 38.19% | 38.12% | 38.12% |
| FIIs | 16.03% | 18.24% | 24.47% | 27.44% |
| DIIs | 28.51% | 27.47% | 20.65% | 18.67% |
| Government | 0.13% | 0.13% | 0.14% | 0.14% |
| Public | 17.14% | 15.97% | 16.63% | 15.65% |
| No. of Shareholders | 3,41,815 | 4,30,896 | 5,35,253 | 5,48,188 |
IHCL Partnerships and Acquisitions
Indian Hotels Company (IHCL) is actively expanding its portfolio through strategic partnerships and acquisitions. One of its key collaborations is with the Ambuja Neotia Group, aimed at growing the hospitality footprint across India with seven hotels and resorts.
This partnership features prestigious properties like the Taj Chia Kutir and Taj Guras Kutir in Darjeeling and Gangtok, which enhance IHCL’s presence in key tourist destinations. These resorts are known for their luxury services and contribute significantly to IHCL’s vision of offering diverse experiences.
By combining strengths with established groups like Ambuja Neotia, IHCL is effectively increasing its footprint in the luxury and leisure hospitality segments. These alliances reflect the company’s ongoing commitment to delivering high-quality offerings while expanding its market share in the evolving hospitality industry.
IHCL Peer comparison
Indian Hotels Company (IHCL) stands out with a strong market cap of ₹122,500.58 Cr and a P/E ratio of 85.57. Compared to peers like EIH and Chalet Hotels, IHCL’s 1-year return of 96.33% reflects superior performance in the hospitality industry.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Indian Hotels Co | 860.6 | 122500.58 | 85.57 | 14.26 | 15.11 | 42.55 | 96.33 | 0.2 |
| EIH | 411.25 | 25718.1 | 38.16 | 17.62 | 23.62 | -2.84 | 64.83 | 0.29 |
| Chalet Hotels | 989.1 | 21604.69 | 287.22 | 16.36 | 10.06 | 16.5 | 42.02 | 0 |
| Lemon Tree Hotel | 149.5 | 11844.08 | 78.01 | 16.31 | 11.36 | 2.84 | 24.74 | 0 |
| Juniper Hotels | 345.25 | 7681.89 | 225.01 | 1.56 | 6.8 | -21.12 | NA | 0 |
| Mahindra Holiday | 356.5 | 7201.58 | 65.31 | 24.03 | 9.24 | -21.77 | -5.94 | 0 |
| I T D C | 602.95 | 5171.47 | 73.5 | 19.18 | 31.4 | -32.14 | 33.65 | 0.42 |
Future of IHCL
The future of Indian Hotels Company (IHCL) looks promising with a strong focus on expanding its luxury and premium offerings. The company aims to increase its global presence by entering new markets and adding high-end hotels to its portfolio.
IHCL’s growth strategy involves enhancing its operational efficiency and digital transformation initiatives. The company is investing in innovative technologies and sustainable practices to align with emerging trends, ensuring long-term value creation for its stakeholders.
Moreover, IHCL’s commitment to expanding partnerships and acquisitions will further drive its growth. The brand’s focus on personalized guest experiences, along with its expansion into leisure destinations, positions it for continued success in India and internationally.
How to Invest In IHCL Shares?
To invest in IHCL shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze IHCL’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for IHCL on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
IHCL – FAQs
IHCL (Indian Hotels Company Limited) has a market cap of ₹1,22,501 crore. This valuation reflects its dominant position in the hospitality industry, bolstered by its strong brand and large portfolio of luxury hotels across India and globally.
IHCL is a leading player in the Indian hospitality industry, renowned for its luxury hotels, including brands like Taj, Vivanta, and Ginger. While it faces competition, IHCL remains a significant market leader with an extensive portfolio and legacy.
IHCL has made several strategic acquisitions, including the purchase of landmark properties and hotel chains. Recent acquisitions have strengthened its position in both luxury and mid-market segments, expanding its geographic reach and enhancing its brand value.
IHCL operates in the hospitality industry, owning and managing luxury hotels, resorts, and palaces. It provides premium services to travelers, with a portfolio including well-known brands like Taj, which are synonymous with world-class hospitality.
IHCL is owned by the Tata Group, one of India’s largest conglomerates. It is publicly traded, with significant control retained by the group’s promoters, contributing to its strong market presence and strategic growth initiatives in the hospitality sector.
The major shareholders of IHCL include Tata Group promoters (38.12%), FIIs (24.47%), DIIs (20.65%), and public shareholders (16.63%). The company’s shareholding pattern reflects significant institutional interest and strong promoter control.
IHCL operates in the hospitality industry, focusing on luxury hotels, resorts, and leisure services. It caters to premium and mid-market segments, providing high-end accommodations, dining, and recreational services, and contributing significantly to India’s tourism and service economy.
IHCL has shown steady growth in its order book, driven by new hotel openings, management contracts, and ongoing renovations. The company’s expansion strategy, including a focus on luxury properties, continues to contribute to its robust pipeline for the year.
To invest in IHCL shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
IHCL has a high stock P/E ratio of 85.6, suggesting it may be valued at a premium. Investors should compare this ratio with industry benchmarks and evaluate the company’s growth potential and market positioning in the hospitality sector.
IHCL’s future looks promising, with ongoing expansions, new hotel openings, and a focus on luxury and premium services. The company is poised for growth, especially as the tourism sector rebounds, and as it strengthens its global footprint.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
