ITC Hotels Ltd
ITC Hotels Ltd
Consumer DiscretionaryITC Hotels is an Indian hospitality company that operates and manages hotels, with over 200 hotels. It has a franchise agreement to operate most of its hotels as part of The Luxury Collection of Marriott International. It operates hotels across 90+ destinations under brands like ITC Hotels, Mementos, Epiq Collection Storii, Welcomhotel, Fortune, and Welcome Heritage.[1][2]
ITC Hotels has overwhelming analyst support (93% Buy ratings) and strong TTM profit growth of 37%, but the stock trades at an expensive 43.3x PE with a low 3-year ROE of just 7%. The debt-free balance sheet is a positive, but stretched valuations and a 20% stock decline over the past year warrant caution until earnings catch up to the premium pricing.
Key Fundamentals
SmallcapHotels & ResortsLeisure ServicesTechnical Indicators
Key Insights
Strengths
1- Company is almost debt free.
Weaknesses
3- Stock is trading at 3.19 times its book value
- Company has a low return on equity of 6.63% over last 3 years.
- Working capital days have increased from 70.6 days to 116 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoITC Hotels has overwhelming analyst support (93% Buy ratings) and strong TTM profit growth of 37%, but the stock trades at an expensive 43.3x PE with a low 3-year ROE of just 7%. The debt-free balance sheet is a positive, but stretched valuations and a 20% stock decline over the past year warrant caution until earnings catch up to the premium pricing.
- Near-unanimous analyst consensus with 92.86% Buy ratings (13 out of 14 analysts recommend Buy)
- Company is almost debt-free, providing strong financial flexibility and low balance sheet risk
- TTM compounded profit growth of 37% indicates accelerating earnings momentum
- TTM compounded sales growth of 16% reflects healthy top-line expansion in the hospitality sector
- Last year ROE improved to 8% from the 3-year average of 7%, showing improving capital efficiency
- Large market cap of Rs 36,867 crore provides liquidity and institutional investor comfort
- Dividend yield of 0.59% offers some income support while the business scales post-demerger
- Stock has declined 20% over the past 1 year, indicating sustained negative price momentum
- PE ratio of 43.3x is expensive for a hospitality company with single-digit ROE
- 3-year ROE of only 7% (6.63% per screener) is well below the cost of equity for most investors
- Working capital days have deteriorated significantly from 70.6 days to 116 days, indicating operational inefficiency
- Price-to-book ratio of 3.05x is elevated given the low return on equity profile
- Dividend yield of just 0.59% offers minimal income cushion against capital losses
- As a recently demerged entity, limited standalone historical data (5-year and 10-year growth metrics unavailable) makes long-term assessment difficult
- No available ROCE data raises questions about overall capital allocation efficiency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- ITC holds 83cr shares unencumbered Jun 22
ITC Limited disclosed no encumbrance on its 83 crore shares in ITC Hotels for FY26, filed under SEBI takeover regulations.
- Citigroup analyst meet attendance Jun 15
ITC Hotels representatives will attend a physical group meeting organised by Citigroup Global Markets India on June 19, 2026, in Gurugram.
TL;DR: Recent news flow for ITC Hotels is purely procedural with no material positive or negative catalysts. The parent ITC Limited maintains its full unencumbered 83 crore stake, signaling stable ownership. Engagement with Citigroup analysts suggests ongoing institutional interest. With no headwinds or concrete positives emerging, the near-term narrative remains flat pending operational updates.
Quarterly Results
| Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 706 | 778 | 1,015 | 1,061 | 816 | 839 | 1,231 | 1,254 |
| Expenses | 500 | 566 | 635 | 648 | 571 | 594 | 764 | 787 |
| Operating Profit | 206 | 212 | 381 | 412 | 245 | 246 | 467 | 466 |
| OPM % | 29% | 27% | 37% | 39% | 30% | 29% | 38% | 37% |
| Other Income | 14 | 7 | 19 | 43 | 48 | 49 | -34 | 60 |
| Interest | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Depreciation | 95 | 104 | 104 | 100 | 102 | 104 | 104 | 106 |
| PBT | 123 | 114 | 294 | 354 | 189 | 189 | 327 | 418 |
| Tax % | 29% | 33% | 27% | 27% | 29% | 29% | 28% | 24% |
| Net Profit | 87 | 77 | 216 | 258 | 134 | 133 | 237 | 317 |
| EPS in Rs | — | — | — | 1.23 | 0.64 | 0.64 | 1.13 | 1.52 |
Profit & Loss
| Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|
| Sales | 2,224 | 3,560 | 4,139 |
| Expenses | 1,454 | 2,305 | 2,716 |
| Operating Profit | 771 | 1,255 | 1,424 |
| OPM % | 35% | 35% | 34% |
| Other Income | 16 | 76 | 124 |
| Interest | 20 | 44 | 8 |
| Depreciation | 201 | 402 | 417 |
| PBT | 565 | 884 | 1,123 |
| Tax % | 25% | 28% | 27% |
| Net Profit | 424 | 638 | 821 |
| EPS in Rs | — | 3.05 | 3.92 |
| Div. Payout % | 0% | 0% | 26% |
Balance Sheet
| Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|
| Equity Capital | 83 | 208 | 208 |
| Reserves | 8,415 | 10,484 | 11,450 |
| Borrowings | 74 | 73 | 74 |
| Other Liabilities | 1,617 | 1,707 | 1,753 |
| Total Liabilities | 10,188 | 12,472 | 13,485 |
| Fixed Assets | 6,436 | 8,189 | 8,090 |
| CWIP | 1,768 | 158 | 206 |
| Investments | 204 | 676 | 1,956 |
| Other Assets | 1,780 | 3,449 | 3,233 |
| Total Assets | 10,188 | 12,472 | 13,485 |
Cash Flow
| Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|
| Operating | 672 | 803 | 1,110 |
| Investing | -753 | -2,206 | -1,174 |
| Financing | 127 | 1,430 | 19 |
| Net Cash Flow | 47 | 27 | -46 |
| Free Cash Flow | 22 | 422 | 701 |
| CFO/OP | 116 | 81 | 98 |
Ratios
| Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|
| Debtor Days | 24 | 21 | 20 |
| Inventory Days | — | — | 1,209 |
| Days Payable | — | — | 415 |
| Cash Conversion Cycle | 24 | 21 | 814 |
| Working Capital Days | 48 | 48 | 116 |
| ROCE % | — | 10% | 11% |
Documents
Frequently Asked Questions about ITC Hotels Ltd
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Company Information
ITC Hotels is an Indian hospitality company that operates and manages hotels, with over 200 hotels. It has a franchise agreement to operate most of its hotels as part of The Luxury Collection of Marriott International. It operates hotels across 90+ destinations under brands like ITC Hotels, Mementos, Epiq Collection Storii, Welcomhotel, Fortune, and Welcome Heritage.[1][2]