top of page

Budget Travel Boom: Why Kamat Hotels Could Be Your Ticket to Profits

kamat hotels india limited

Kamat Hotels India: A Feast for Value Investors?

I. Overall Rating & Recommendation:

Rating: 7/10 (Buy with Moderate Caution)

Recommendation: Kamat Hotels presents a compelling value proposition despite some risks. Strong financial performance, improving industry outlook, and attractive valuation warrant a buy. However, exercise caution due to potential macroeconomic headwinds and high beta.

II. Company Analysis:

Sector: Hotels & Resorts

Market Cap (as of Jan 21, 2024): ₹885 Crore

Current CMP: ₹357.20

Products: Kamat Hotels operates a chain of mid-range, family-friendly hotels across India. Revenue predominantly comes from:

  • Room Revenue (75% of revenue)

  • Food & Beverage Sales (20% of revenue)

  • Other Services (5% of revenue)


  • Strong recent performance with 106% revenue growth and 1271% profit growth for FY23.

  • Healthy ROE (203%) and ROCE (73%) indicate efficient capital utilization.

  • Low debt-to-equity ratio (0.23) provides financial stability.

III. Macroeconomic Factors:

  • Reviving travel and tourism industry post-pandemic bodes well for Kamat Hotels.

  • Government initiatives promoting domestic tourism could further boost the sector.

  • Inflationary pressures and potential economic slowdown pose challenges.

IV. Technical Analysis:

  • Daily chart trend indicates an upward channel with breakout potential above ₹370.

  • Relative Strength Index (RSI) nearing 70 suggests some overbought conditions, warranting caution.

V. Future Predictions:

  • Assuming smooth market conditions, a CAGR of 15-20% could be achievable in the next 5 years.

  • Historical CAGR (past 5 years) for both Kamat Hotels and its index have been strong, reflecting industry recovery.

VI. Ratios:

  • Debt-to-equity ratio: 0.23

  • Shareholder ratios: ROE: 203%, ROA: 39%

  • Sortino ratio: 1.2 (moderately downside sensitive)

  • PEG ratio: 0.28 (undervalued)

  • Price-to-sales ratio: 2.74 (within industry average)

  • Beta: 1.74 (more volatile than NIFTY and hotel sector index)

VII. Conclusion:

Kamat Hotels presents a promising investment opportunity with robust financials, attractive valuation, and a favorable industry outlook. However, manage risk with moderate exposure and monitor macroeconomic developments.


Click here to take demo class or contact on this no. 9815173901 to enroll in our upcoming batch.

2 views0 comments


bottom of page