Oriental Hotels Limited

Consumer Cyclical — Lodging · NSE

₹151.95+₹6.37 (+4.38%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Oriental Hotels Limited owns, operates, and manages hotels and resorts in India and Hong Kong.

IndustryLodging

SectorConsumer Cyclical

Employees283

Annual revenue₹494 Cr

How does it make money?

Turns over ₹494 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 283 employees supports ₹1.75 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.75 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.6% 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.

Peer median ROE25.9%

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 +25% while net margin moved +0% 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+25%

Margin effect+0%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.8% — barely ahead of inflation
✗ Profit CAGR of only 7.8%
✗ Latest-year revenue growth of 2.6% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

51/ 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

40.4x

3Y Median

46.8x

40 monthly readings · mean 47.9x · range 28.0x–65.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 46.8x. 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 42% below the peer median of 69.2x.

vs. its own history

Fair

46.8x median over 40 months · -14%

vs. sector peers

Cheap

69.2x median of 4 peers · -42%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

20.1x

PEG

5.19

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 39% over 3 years.
Cash generation is improving
Free cash flow is up 31% over 3 years.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
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

3 items require attention · 3 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 55% against revenue up 25% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.56 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹93 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 30.9% to 28.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 55% against revenue up 25%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro 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

1EBITDA margin holds above 27%✓ 28.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 2.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹93 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹2,714 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.47x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.76

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

12.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

2.6%

Modest

Modest growth

Profit Growth (YoY)

6.7%

Modest

Slow profit growth

Dividend Yield

0.43%

Modest

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

Free Cash Flow

₹69 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.9%

Average

Average asset productivity

Operating Margin

15.7%

Good

Healthy core-business profitability

Net Margin

13.4%

Good

Strong bottom-line conversion

Current Ratio

0.56

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

97%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

142.1 / 138.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹395 Cr	₹393 Cr	₹440 Cr	₹494 Cr	+7.8%
EBITDA	₹122 Cr	₹109 Cr	₹113 Cr	₹141 Cr	+5.0%
EBITDA Margin	30.9%	27.7%	25.7%	28.6%	—
PAT (Net Profit)	₹54 Cr	₹50 Cr	₹39 Cr	₹68 Cr	+7.8%
EPS	₹3.04	₹2.78	₹2.2	₹3.8	+7.7%
ROE	10.1%	8.0%	5.8%	8.9%	—
ROCE	13.7%	11.2%	10.2%	12.6%	—
Total Debt	₹215 Cr	₹202 Cr	₹183 Cr	₹131 Cr	-15.3%
Free Cash Flow	₹71 Cr	₹12 Cr	₹29 Cr	₹93 Cr	+9.4%

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 EBITDA has grown at 5.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.9% to 28.6% over 3 years (-2.3 pts).

🟢 PAT (Net Profit) has grown at 7.8% a year over 3 years.

🟢 EPS has grown at 7.7% a year over 3 years.

🔴 ROE has fallen from 10.1% to 8.9% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 13.7% to 12.6% over 3 years (-1.1 pts).

🟢 Total Debt has shrunk at 15.3% a year over 3 years.

🟢 Free Cash Flow has grown at 9.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹981 Cr

Total Liabilities

₹219 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹128 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

69.3%

Corporate Actions

Dividend Rate

₹0.65

Ex-Dividend Date

23 Jul 2026

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

2 mixed1 negative3 general

Oriental Hotels Share Price: price action and fundamentals

Univest, 16 Oct

Oriental Hotels Q2FY27 Results: Net profit down 8.2% to ₹1,162 lakh

scanx.trade, 18 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Indian Hotels, Oriental Hotels rally up to 6%; what's driving hotel stocks?

Business Standard, 16 Oct

IHCL AND ORIENTAL HOTELS LIMITED ANNOUNCE MERGER

The Indian Hotels Company Limited (IHCL), 23 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Will IHCL's merger with Oriental Hotels unlock value for shareholders? Here's what Goldman Sachs, Nomura,

The Economic Times, 25 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Oriental Hotels Share Price near 52-week high, price update

Univest, 15 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑