Chalet Hotels Ltd.
ISIN: INE427F01016 • Market Cap: ₹18,576 Cr
The 5-Pillar Quality Audit for Chalet Hotels Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (44.6%), Return on Capital Employed (12.3%), and equity compounding (4.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.84 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (28.4%) and 3Y PAT CAGR (42.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 35.18 vs PEG of 4.75 and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.3%, backed by 29.3% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 28.4%)
Revenue has expanded at 28.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 42.4%)
Net earnings have compounded at 42.4% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (29.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 29.3%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking CHALET against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 71/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Services Sector Peer Comparison
Compare CHALET directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Chalet Hotels Ltd. (CHALET)Current | 71/100 | ₹18,576 Cr | 35.18 | 12.3% | 0.84 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: Chalet Hotels Ltd.
Q:What is the 5-Pillar Fundamental Score for Chalet Hotels Ltd. (CHALET)?
Chalet Hotels Ltd. has a RupeeTools Fundamental Score of 71/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (60/100), Financial Health (71/100), Growth (99/100), Valuation (42/100), and Ownership Quality (82/100).
Q:Is CHALET fundamentally strong for long-term investment?
Yes, CHALET exhibits solid fundamental strength with a 71/100 score, driven by a return on equity of 4.7% and a debt-to-equity ratio of 0.84.
Q:Does CHALET pass the Coffee Can Investing filter?
No. CHALET does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does CHALET compare against other Consumer Services peers?
Within India's Consumer Services sector, CHALET trades at a P/E of 35.18 and generates an ROCE of 12.3%. Compare its 5-Pillar score of 71/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.