“Suite Dreams or Hotel Nightmares? Indian Hotels Unpacked”
1. At a Glance
Indian Hotels Co Ltd (IHCL) is the ₹1.05 lakh Cr hospitality giant behind Taj, Vivanta, SeleQtions and Ginger. Over the past five years, revenues have grown at a 13% CAGR, profits at a blistering 43% CAGR, and ROCE sits at 17%. Yet at 63× P/E vs. peer median ~39×, you’re paying Ritz rates for dhaba returns. Fair-value range: ₹214–268.
2. Introduction with Hook
You’ve stayed at a Taj once and felt regal. Then you peep at the stock price and think, “Am I booking a suite or funding a palace renovation?” IHCL’s growth story reads like a Bollywood blockbuster—plot twists, villainous costs, hero-level profit rebounds—but the valuation feels Oscar-bait for the critics. Let’s unpack whether this luxury play is a five-star deal or just room service with a side of hot air.
3. Business Model (WTF Do They Even Do?)
Luxury & Upscale Hotels: Taj (~26 hotels), Vivanta (~27)
