Chalet Hotels Limited

Consumer Cyclical — Lodging · NSE

₹851.55+₹8.95 (+1.06%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Chalet Hotels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Chalet Hotels Limited owns, develops, manages, and operates hotels and resorts in India. It also operates in rental and annuity, and real estate development business. The company's portfolio comprises hotels and commercial spaces.

IndustryLodging

SectorConsumer Cyclical

Employees3,032

Annual revenue₹2,770 Cr

How does it make money?

Turns over ₹2,770 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation. Each of its 3,032 employees supports ₹91.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹91.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

19 analysts covering the stock expect revenue to grow about 10.7% and earnings to grow about 14.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.7%

Est. earnings growth+14.1%

Analysts19

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +145% while net margin moved +43% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+145%

Margin effect+43%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.07 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.3x

3Y Median

77.9x

40 monthly readings · mean 85.5x · range 28.7x–155.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 55% below its 3y median of 77.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 49% below the peer median of 69.2x.

vs. its own history

Cheap

77.9x median over 40 months · -55%

vs. sector peers

Cheap

69.2x median of 4 peers · -49%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.0x

PEG

0.68

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 11% over 3 years.
Cash generation is improving
Free cash flow is up 141% over 3 years.
Return on equity is rising
ROE has improved from 11.9% to 17.4%.
Return on capital is rising
ROCE has improved from 11.1% to 16.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.70 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 55% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 49% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 26% a year✓ 34.9% CAGR
Latest reported year was -42.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 42%✓ 44.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹729 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹18,648 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.3x

Fair

Fairly valued against the generic band

P/B Ratio

5.04x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹24.1

Profitable

Profitable on a per-share basis

ROE

17.4%

Strong

Strong capital efficiency

ROCE

16.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

-42.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-57.7%

Falling

Profits are shrinking

Dividend Yield

0.23%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹729 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

27.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

33.7%

Good

Healthy core-business profitability

Net Margin

22.1%

Good

Strong bottom-line conversion

Current Ratio

0.70

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

847.5 / 860.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,128 Cr	₹1,417 Cr	₹1,718 Cr	₹2,770 Cr	+34.9%
EBITDA	₹503 Cr	₹610 Cr	₹765 Cr	₹1,228 Cr	+34.7%
EBITDA Margin	44.6%	43.0%	44.5%	44.3%	—
PAT (Net Profit)	₹183 Cr	₹278 Cr	₹143 Cr	₹645 Cr	+52.1%
EPS	₹8.94	₹13.53	₹6.52	₹29.46	+48.8%
ROE	11.9%	15.0%	4.7%	17.4%	—
ROCE	11.1%	12.1%	12.2%	16.6%	—
Total Debt	₹2,667 Cr	₹2,805 Cr	₹2,604 Cr	₹2,368 Cr	-3.9%
Free Cash Flow	₹302 Cr	₹253 Cr	-₹19 Cr	₹729 Cr	+34.1%

🟢 Revenue has grown at 34.9% a year over 3 years.

🟢 EBITDA has grown at 34.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 44.3% over 3 years.

🟢 PAT (Net Profit) has grown at 52.1% a year over 3 years.

🟢 EPS has grown at 48.8% a year over 3 years.

🟢 ROE has risen from 11.9% to 17.4% over 3 years (+5.6 pts).

🟢 ROCE has risen from 11.1% to 16.6% over 3 years (+5.5 pts).

🟢 Total Debt has shrunk at 3.9% a year over 3 years.

🟢 Free Cash Flow has grown at 34.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,309 Cr

Total Liabilities

₹3,611 Cr

Cash & Equivalents

₹164 Cr

Operating Cash Flow

₹1,067 Cr

Capex

-₹338 Cr

Shareholding (proxy)

Institutional Holding

27.2%

Insider Holding

67.4%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

20 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,023

+20.1% vs CMP

Target Range

₹890 – ₹1,250

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Chalet Hotels Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

328% returns in 5 years! ICICI Securities sees 27% upside in this hotel stock, do you own? Check target price

Livemint, 23 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Hotel stocks: Lemon Tree, ITC Hotels, Chalet soar up to 5%; here's why

Business Standard, 22 Jun

Chalet Hotels core EBITDA rises 15% in Q1FY27 despite PAT drop

scanx.trade, 29 Jul

Godrej Agrovet, FACT, Chalet Hotels shares surge amid spike in volumes; check full list

Upstox, 25 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

AU Bank, Chalet Hotels, Paradeep: Top stocks to trade — Check key levels, target prices & stop loss

Business Today, 26 Aug

Watch Items

Revenue growth is negative (-42.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑