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In this blog we are going to have Stocks Analysis of 10 Best Hospital & Tourism companies. You will get full analysis , so read it full. Let’s first see common info about Hospitality and Tourism sector.
Introduction to the Hospitality and Tourism Sector in India:
The hospitality and tourism sector in India is a vital part of the nation’s economy, contributing significantly to its GDP and employment. It includes a wide range of services like accommodation, food and beverage, travel, recreation, and entertainment, making it a diverse and dynamic industry.
GDP Contribution:
- The hospitality and tourism sector contributed approximately 7% to India’s GDP before the pandemic.
- With the sector’s revival post-pandemic, it is expected to grow further, contributing around 9-10% to the GDP by 2030.
- The industry plays a crucial role in foreign exchange earnings, attracting international tourists, and boosting local economies.
Employment Generation:
- The sector is one of the largest employment generators in India, providing jobs to around 45 million people, accounting for 8% of the total workforce.
- Employment includes direct jobs in hotels, restaurants, airlines, and travel agencies, as well as indirect jobs in supply chains and supporting industries.
- It also supports self-employment, with a rise in local tour operators, travel guides, and homestay businesses.
Overall Importance:
- Economic Growth: Boosts regional development, especially in states with popular tourist destinations like Rajasthan, Kerala, and Goa.
- Cultural Exchange: Promotes India’s rich cultural heritage and diversity to the global audience.
- Foreign Exchange Earnings: Significant contributor to India’s foreign exchange reserves through international tourism.
- Infrastructure Development: Drives growth in infrastructure — airports, roads, hospitality facilities — benefiting other sectors as well.
- Resilience and Adaptability: Despite challenges like the pandemic, the sector has shown strong recovery through innovation in domestic tourism, digital platforms, and sustainable tourism practices.
India’s hospitality and tourism sector is poised for strong growth, backed by government initiatives like Incredible India, Dekho Apna Desh, and the expansion of the UDAN scheme to boost air connectivity. As the industry evolves, it remains a key player in shaping India’s global identity and economic landscape.
Stocks Analysis of 10 Best Hospitality & Tourism Companies :
List of 10 Best Hospitality & Tourism Companies :
| Company Name | Market Capitalization (₹ Crores) | Net Profit (₹ Crores) | Stock Price (₹) | Index Name |
|---|---|---|---|---|
| Indian Hotels Company Ltd (IHCL) | 1,07,000 | 1,803 | 816.10 | Nifty 500 |
| EIH Ltd | 8,500 | 150 | 150 | Nifty 500 |
| Lemon Tree Hotels Ltd | 6,000 | 100 | 75 | Nifty 500 |
| Mahindra Holidays & Resorts India Ltd | 5,500 | 200 | 250 | Nifty 500 |
| Chalet Hotels Ltd | 4,000 | 120 | 200 | Nifty 500 |
| Royal Orchid Hotels Ltd | 500 | 15 | 100 | Nifty 500 |
| Thomas Cook (India) Ltd | 3,000 | 80 | 50 | Nifty 500 |
| SpiceJet Ltd | 2,500 | -1,000 | 40 | Nifty 500 |
| InterGlobe Aviation Ltd (IndiGo) | 95,000 | 5,000 | 2,400 | Nifty 50 |
| Cox & Kings Ltd | Data not available | Data not available | Data not available | Nifty 500 |
Fundamental & Financial Analysis of 10 Best Hospitality and Tourism Companies :
| Company Name | Debt/Equity Ratio | P/E Ratio | P/B Ratio | EPS (₹) | Dividend Yield (%) | ROE (%) | ROA (%) |
|---|---|---|---|---|---|---|---|
| Indian Hotels Company Ltd (IHCL) | 0.05 | 47.2 | 5.0 | 17.3 | 0.41 | 10.6 | 5.8 |
| EIH Ltd | 0.11 | 58.3 | 3.2 | 2.6 | 0.25 | 5.5 | 3.1 |
| Lemon Tree Hotels Ltd | 0.85 | 65.0 | 4.5 | 1.2 | 0.10 | 3.0 | 1.5 |
| Mahindra Holidays & Resorts India Ltd | 0.20 | 30.0 | 2.8 | 8.3 | 1.20 | 9.5 | 4.0 |
| Chalet Hotels Ltd | 0.70 | 40.0 | 3.0 | 5.0 | 0.50 | 7.5 | 3.5 |
| Royal Orchid Hotels Ltd | 0.60 | 50.0 | 2.5 | 2.0 | 0.30 | 6.0 | 2.5 |
| Thomas Cook (India) Ltd | 0.25 | 35.0 | 1.8 | 3.5 | 0.80 | 8.0 | 3.0 |
| SpiceJet Ltd | -2.00 | N/A | N/A | -16.0 | 0.00 | N/A | N/A |
| InterGlobe Aviation Ltd (IndiGo) | 0.10 | 20.0 | 4.0 | 120.0 | 0.50 | 15.0 | 7.0 |
| Cox & Kings Ltd | Data not available | Data not available | Data not available | Data not available | Data not available | Data not available | Data not available |
Overall Insights:
- Leaders: Indian Hotels Company Ltd (IHCL) and InterGlobe Aviation Ltd (IndiGo) stand out for their stable financial metrics, indicating strong management and growth potential.
- High-Risk Investments: SpiceJet Ltd and Cox & Kings Ltd show signs of financial distress, making them higher-risk investments.
- Moderate Performers: Companies like Mahindra Holidays & Resorts and Chalet Hotels Ltd have balanced growth potential but carry moderate leverage.
Approximate Piotroski F-Scores for Selected Companies:
| Company Name | Approximate Piotroski F-Score |
|---|---|
| Thomas Cook | 4 |
| IndiGo | 7 |
| SpiceJet | 2 |
| Royal Orchid Hotels | 5 |
| Chalet Hotels | 6 |
| Mahindra Holidays | 6 |
| Lemon Tree Hotels | 5 |
| EIH Ltd | 6 |
| Indian Hotels Company Ltd | 7 |
Analysis:
- IndiGo and Indian Hotels have the highest scores, indicating strong financial health and stability.
- SpiceJet has the lowest score, reflecting financial challenges and weaker operational efficiency.
- Chalet Hotels, Mahindra Holidays, and EIH Ltd demonstrate stable financial positions with scores around 6, suggesting moderate strength.
- Thomas Cook shows a weaker position, likely due to past financial challenges.
Final Words :
Credit Ratings Summary for Hospitality & Tourism Companies
| Company Name | Rating Agency | Credit Rating | Outlook | Date | Remarks |
|---|---|---|---|---|---|
| Indian Hotels Company Ltd (IHCL) | ICRA | AA+ | Stable | Sep 2023 | Strong financial performance and brand presence. |
| EIH Ltd | India Ratings | IND AA | Stable | Jul 2024 | Strong operational performance and financial profile. |
| Lemon Tree Hotels Ltd | CRISIL | A | Stable | Sep 2022 | Rating outlook revised to ‘Stable’; Rating reaffirmed. |
| Mahindra Holidays & Resorts India Ltd | India Ratings | IND A+ | Stable | Mar 2023 | Supported by Mahindra & Mahindra Limited. |
| Chalet Hotels Ltd | CRISIL | A+ | Stable | Not Available | Moderate operational performance. |
| Royal Orchid Hotels Ltd | ICRA | A- | Stable | Feb 2024 | Moderate operational performance and financials. |
| Thomas Cook (India) Ltd | CRISIL | AA- | Stable | Oct 2023 | Good financial position despite market challenges. |
| SpiceJet Ltd | CRISIL | D | Negative | Jun 2022 | Financial difficulties and delays in servicing bank facilities. |
| InterGlobe Aviation Ltd (IndiGo) | CRISIL | A | Stable | Mar 2023 | Strong market position in the aviation sector. |
| Cox & Kings Ltd | Not Available | Not Available | Not Available | Not Available | Data not found. |
Key Takeaways:
- Top Performers: Indian Hotels Company Ltd (IHCL) with a rating of AA+, indicating a strong and stable financial profile.
- Moderate Performers: Companies like Mahindra Holidays, Chalet Hotels, and InterGlobe have ratings in the A to A+ range, reflecting stability but room for growth.
- Financial Stress: SpiceJet Ltd has a CRISIL D rating, indicating severe financial issues.
- Data Gaps: Credit ratings for Cox & Kings Ltd are still unavailable.
Company Prospects and Investment Outlook for Hospitality & Tourism Companies
| Company Name | Prospects | Bullishness | Bearishness | Why Better Investment? |
|---|---|---|---|---|
| Indian Hotels Company Ltd (IHCL) | Strong market leader, premium brand | Strong brand, steady growth, expanding portfolio | High competition in luxury segment | Established brand, stable financials, consistent revenue growth. |
| EIH Ltd | Well-known luxury hotel brand | Strong brand equity, premium clientele | Vulnerable to economic downturns affecting luxury travel | Resilient brand, solid financial profile, long-term stability. |
| Lemon Tree Hotels Ltd | Expanding mid-scale segment | Focus on business travelers, growing footprint | High debt, dependence on corporate travel | Mid-market strength, growth potential in Tier-2 cities. |
| Mahindra Holidays & Resorts India Ltd | Niche vacation ownership | Strong brand association, loyal customer base | Seasonal dependency, limited international exposure | Unique vacation model, consistent occupancy, and parent company support. |
| Chalet Hotels Ltd | Urban luxury and business hotels | Strong presence in metro cities, premium properties | High leverage, cyclical industry risks | Quality assets, strategic locations, focus on business travelers. |
| Royal Orchid Hotels Ltd | Mid-scale hotels, diverse locations | Increasing demand from domestic tourism | Relatively smaller scale, less brand recognition | Agile, expanding in under-served Tier-2 and Tier-3 cities. |
| Thomas Cook (India) Ltd | Diversified travel services | Strong brand recall, integration of travel services | Impact of regulatory changes, market volatility | Established travel service provider with diversified revenue streams. |
| SpiceJet Ltd | Budget airline, tourism enabler | Growing domestic aviation market, strong route network | Financial instability, operational challenges | Potential recovery play if financials stabilize. |
| InterGlobe Aviation Ltd (IndiGo) | Market leader in aviation | Dominant market share, cost leadership, expanding international routes | High fuel costs, regulatory pressures, competitive pricing environment | Resilient business model, large market share, strong cash flow. |
| Cox & Kings Ltd | Tourism and education tours | Established global player in tourism | Financial distress, ongoing insolvency issues | If restructured, potential revival of a well-known brand. |
Key Insights:
- Best Long-Term Bets: Indian Hotels (IHCL), EIH Ltd, and InterGlobe Aviation (IndiGo) due to strong brand presence and stable financials.
- Growth Potential: Lemon Tree, Mahindra Holidays, and Chalet Hotels, given their niche markets and expansion plans.
- Recovery Play: SpiceJet and Cox & Kings have potential if they successfully navigate their financial difficulties.
- Diversification Benefit: Thomas Cook’s diversified travel services provide stability against market volatility.
I hope you like this article
Happy Investing
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