ITC Hotels Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

ITC Hotels Ltd trades at ₹172, in a downtrend and 31 weeks into that stage. That is −3.2% against its own 200-day average. It sits at 29% of a 52-week range of ₹142 to ₹248. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 7 straight weeks.

Today the stock is in a downtrend — week 31 of stage 4, confirmed. At ₹172 it trades −3.2% versus its 200-day average and sits at 29% of its 52-week range (₹142–₹248).

Against the market, two honest reads. Cumulative: over the last 1.5 years the stock moved +1% while the NIFTY 500 moved +7% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 7 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 4th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

ITC Hotels Ltd trades at 36.2× P/E, near the bottom of its own range — cheaper only 4% of the time. Its long-run median P/E is 46.0×, measured across 1.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 36.2× is near the bottom of its own range — cheaper only 4% of the time, against a long-run median of 46.0× measured over 1.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +28.5% against a −32.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

ITC Hotels Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 7 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

55.6/100 — rank 8 of 24 in Hotels · 93% evidence confidence

ITC Hotels Ltd scores 55.6 out of 100 against the 24 companies it is compared with in Hotels, ranking 8. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 23.1 + 13.2 + 11.6 + 7.7 = 55.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

ITC Hotels Ltd reported ₹936 Cr of revenue in the Jun 26 quarter, +14.7% year on year. That is the 5th straight quarter of year-on-year growth. Over 2 years it has compounded at 36.4% a year. The last full year, FY26, came in at ₹4,139 Cr. The last four reported quarters add to ₹4,260 Cr.

ITC Hotels Ltd reported ₹936 Cr of revenue in the Jun 26 quarter, +14.7% year on year. That is the 5th straight quarter of year-on-year growth. Over 2 years it has compounded at 36.4% a year. The last full year, FY26, came in at ₹4,139 Cr. The last four reported quarters add to ₹4,260 Cr.

FY26 revenue came in at ₹4,139 Cr (+16.3% on the year), capping 2 years at 36.4% compound. The latest quarter (Jun 26) printed ₹936 Cr, +14.7% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +15.5% growth against the decade's 36.4% — the current year is running slower than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: 31.0% this quarter (+1.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

ITC Hotels Ltd's operating margin is 31.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 35.0% to 36.0%. The current quarter is running below every full year in that window.

ITC Hotels Ltd's operating margin is 31.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 35.0% to 36.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 31.0%, +1.0 pp against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 35.0%–36.0%.

Why the margin moved: operating margin went +1.2 pp year on year while gross margin went +0.5 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit +35.8% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

ITC Hotels Ltd earned ₹182 Cr of net profit in the Jun 26 quarter, +35.8% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹821 Cr. The 2-year compound rate is 39.2%. That is 19.4% of the quarter's revenue. The same quarter a year earlier earned ₹134 Cr.

ITC Hotels Ltd earned ₹182 Cr of net profit in the Jun 26 quarter, +35.8% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹821 Cr. The 2-year compound rate is 39.2%. That is 19.4% of the quarter's revenue. The same quarter a year earlier earned ₹134 Cr.

Jun 26 profit was ₹182 Cr, +35.8% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹821 Cr (+28.7%), and the 2-year compound rate is 39.2%.

Why profit moved: revenue contributed +14.7% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +35.3% vs revenue +15.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 137% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 137% of ITC Hotels Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,110 Cr of operating cash against ₹821 Cr of profit. After ₹366 Cr of capital spending, ₹744 Cr was left as free cash.

FY26: operating cash of ₹1,110 Cr against reported profit of ₹821 Cr, leaving free cash of ₹744 Cr after ₹366 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 137% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 137%: the cash cycle held roughly steady between FY24 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 20-day cycle and ₹911 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

ITC Hotels Ltd's cash conversion cycle runs 20 days in FY26, down from 24 days in FY24. Capital spending ran ₹911 Cr over the last 2 years. At FY26 sales of ₹4,139 Cr each day of that cycle holds about ₹11.3 Cr, so roughly ₹227 Cr sits inside the business at any moment.

FY26: debtors at 20 days, inventory at 1,209 days — roughly 39.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 20 days, tighter than FY24's 24.

The full loop: cash goes out to suppliers and production on day 0; stock waits 1,209 days to sell; customers pay about 20 days after that; and suppliers themselves are paid at 415 days — netting out to the 20-day cycle.

In money terms: at FY26 sales of ₹4,139 Cr, each day of the cycle holds about ₹11.3 Cr — so the 20-day loop keeps roughly ₹227 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹911 Cr over the last 2 fiscal years against ₹819 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹207 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 11% and the ROIC − WACC spread is −4.3 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

ITC Hotels Ltd earns a ROCE of 11% in FY26. Return on invested capital clears the cost of that capital by −4.3 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 19.8% net margin on 0.31× asset turns.

FY26 ROCE is 11%.

🚨 Why the return is what it is — the wiring (FY26): 19.8% net margin × 0.31× asset turns × 1.16× balance-sheet leverage ≈ 7.1% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 7.7% − 12.0% = a −4.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

ITC Hotels Ltd carries total debt of ₹74.0 Cr against shareholder equity of ₹11,699 Cr as of Jun 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.01 in FY24 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹74.0 Cr against shareholder equity of ₹11,699 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.01 (FY24) to 0.01 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 13.8 points over 5 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 13.8 points of ITC Hotels Ltd over 5 quarters, the biggest move on the register. That takes foreign institutions to 11.6% of the company. Domestic institutions moved +2.4 points over the same window, to 24.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −13.8 points over 5 quarters to 11.6%; Domestic institutions: +2.4 points over 5 quarters to 24.0%; Promoters: +0.0 points over 5 quarters to 39.9%.

Why the register moved: rotation — foreign institutions −13.8 points against domestic institutions +2.4 points over 5 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

ITC Hotels Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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