ITC Hotels Limited

Consumer Cyclical — Resorts & Casinos · NSE

₹162.40+₹3.72 (+2.34%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

ITC Hotels Limited owns, operates, and manages hotels and resorts in India and internationally. The company operates under the ITC Hotels, Mementos, Storii, EPIQ Collection, Welcomhotel, Fortune Hotels, and WelcomHeritage brands.

IndustryResorts & Casinos

SectorConsumer Cyclical

Employees3,038

Annual revenue₹4,109 Cr

How does it make money?

Turns over ₹4,109 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 3,038 employees supports ₹1.35 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin39.2%

Net margin19.9%

Revenue / employee₹1.35 Cr

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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 9.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE9.2%

ROE7.0%

Peer median ROE25.9%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 14.1% and earnings to grow about 18.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.1%

Est. earnings growth+18.1%

Analysts15

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• Not enough data to assess growth.

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

65/ 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

39.0x

1.3Y Median

57.7x

16 monthly readings · mean 56.3x · range 40.8x–78.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 1.3y median of 57.7x. 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 44% below the peer median of 69.2x.

vs. its own history

Cheap

57.7x median over 16 months · -32%

vs. sector peers

Cheap

69.2x median of 4 peers · -44%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.0x

P/B

2.90x

EV/EBITDA

21.0x

PEG

1.09

Dividend Yield

0.62%

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 2 years.
Valuation below its historical average
At 39.0x the stock trades 32% below its own median of 57.7x.

🔴 What Needs Attention0

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

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 32% 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 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

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

1EBITDA margin holds above 37%✓ 39.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹700 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 9.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 57.7x✓ 39.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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 · 6 neutral · 1 weak

Market Cap

₹33,829 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

39.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.16

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

9.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.63x

Moderate

Moderate leverage

Revenue Growth (YoY)

14.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.62%

Modest

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

Free Cash Flow

₹700 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹162.4

P/E (Forward)

27.7x

Improving

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

Operating Margin

20.1%

Good

Healthy core-business profitability

Net Margin

20.3%

Good

Strong bottom-line conversion

Current Ratio

2.77

Comfortable

Healthy short-term liquidity

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

158.9 / 160.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.9

Neutral momentum

Financial Trend (3-Year)

Metric	FY24	FY25	FY26	2Y CAGR
Revenue	—	₹3,526 Cr	₹4,109 Cr	—
EBITDA	—	₹1,290 Cr	₹1,610 Cr	—
EBITDA Margin	—	36.6%	39.2%	—
PAT (Net Profit)	—	₹635 Cr	₹817 Cr	—
EPS	—	₹3.05	₹3.92	—
ROE	—	5.9%	7.0%	—
ROCE	—	7.9%	9.2%	—
Total Debt	₹74 Cr	₹73 Cr	₹74 Cr	+0.4%
Free Cash Flow	-₹0 Cr	₹415 Cr	₹700 Cr	—

🟢 EBITDA Margin has risen from 36.6% to 39.2% over 2 years (+2.6 pts).

🟢 ROE has risen from 5.9% to 7.0% over 2 years (+1.1 pts).

🟢 ROCE has risen from 7.9% to 9.2% over 2 years (+1.3 pts).

🟡 Total Debt has been broadly flat over 2 years (0.4% a year).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹700 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,485 Cr

Total Liabilities

₹1,786 Cr

Total Debt

₹74 Cr

Cash & Equivalents

₹35 Cr

Operating Cash Flow

₹1,110 Cr

Capex

-₹410 Cr

Shareholding (proxy)

Institutional Holding

30.0%

Insider Holding

46.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

21 May 2026

Analyst Consensus

Recommendations

14 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹211.87

+30.5% vs CMP

Target Range

₹189 – ₹235

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 mixed1 negative2 general

Hotel Stock BLOCK DEAL: FMGC Giant ITC-Backed ITC Hotels Stock Nears Day's High Despite GQG's Stake Sale; BUY?

Goodreturns, 14 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

ITC HOTELS LIMITED Share Price Rise Streak, Today’s Move

Univest, 16 OctPrice 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.

ITC Hotels shares: Jefferies sees 32% upside; stock down 19% in 2026 so far

Business Today, 22 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ITC Hotels Limited (NSE:ITCHOTELS) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Simply Wall Street, 19 JulAnalyst view

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

ITC HOTELS LIMITED Share Price - Live NSE: ITCHOTELS Stock Price & Chart

Upstox, 05 May

Why ITC Hotels Fell on Listing Day After the Demerger

HDFC Sky, 28 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟢Financial HealthStrong16.6/20

🟡GrowthModest10/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair9.5/15

🟡RiskModerate5.8/10

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.

This thesis breaks if

✓EBITDA margin holds above 37%39.2%
✓Free cash flow remains positive₹700 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 8%9.2%
✓Valuation vs its own median of 57.7x39.0x today