Hotels & Accommodations
Further Upside For Kamat Hotels (India) Limited (NSE:KAMATHOTEL) Shares Could Introduce Price Risks After 25% Bounce
Kamat Hotels (India) Limited (NSE:KAMATHOTEL) shareholders have had their patience rewarded with a 25% share price jump in the last month. The last 30 days bring the annual gain to a very sharp 43%.
In spite of the firm bounce in price, given about half the companies in India have price-to-earnings ratios (or “P/E’s”) above 28x, you may still consider Kamat Hotels (India) as an attractive investment with its 18.4x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s limited.
It looks like earnings growth has deserted Kamat Hotels (India) recently, which is not something to boast about. One possibility is that the P/E is low because investors think this benign earnings growth rate will likely underperform the broader market in the near future. If you like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.
Check out our latest analysis for Kamat Hotels (India)
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Kamat Hotels (India) will help you shine a light on its historical performance.
Is There Any Growth For Kamat Hotels (India)?
There’s an inherent assumption that a company should underperform the market for P/E ratios like Kamat Hotels (India)’s to be considered reasonable.
Taking a look back first, we see that there was hardly any earnings per share growth to speak of for the company over the past year. Although pleasingly EPS has lifted 1,090% in aggregate from three years ago, notwithstanding the last 12 months. Therefore, it’s fair to say the earnings growth recently has been superb for the company.
This is in contrast to the rest of the market, which is expected to grow by 25% over the next year, materially lower than the company’s recent medium-term annualised growth rates.
With this information, we find it odd that Kamat Hotels (India) is trading at a P/E lower than the market. It looks like most investors are not convinced the company can maintain its recent growth rates.
What We Can Learn From Kamat Hotels (India)’s P/E?
Despite Kamat Hotels (India)’s shares building up a head of steam, its P/E still lags most other companies. While the price-to-earnings ratio shouldn’t be the defining factor in whether you buy a stock or not, it’s quite a capable barometer of earnings expectations.
We’ve established that Kamat Hotels (India) currently trades on a much lower than expected P/E since its recent three-year growth is higher than the wider market forecast. There could be some major unobserved threats to earnings preventing the P/E ratio from matching this positive performance. At least price risks look to be very low if recent medium-term earnings trends continue, but investors seem to think future earnings could see a lot of volatility.
We don’t want to rain on the parade too much, but we did also find 1 warning sign for Kamat Hotels (India) that you need to be mindful of.
It’s important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
Valuation is complex, but we’re here to simplify it.
Discover if Kamat Hotels (India) might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
This signing represents Lemon Tree Hotels’ continued expansion in the wildlife tourism segment, where the company already operates five properties
| Photo Credit:
SIVAKUMAR PV
The shares of Lemon Tree Hotels Ltd were trading today on the NSE at ₹167.79 up ₹2.60 or 1.57 per cent at the closing bell.
Lemon Tree HotelsLtd has signed a license agreement for a new property in Maharashtra, announcing the addition of Lemon Tree Resort, Pench on August 27, 2025. The resort will be managed by Carnation Hotels Private Ltd, a wholly-owned subsidiary of the hospitality company.
The 60-room wildlife resort will be located in Pench, Maharashtra, positioned near the famous Pench National Park. The property will include a restaurant, banquet facilities, swimming pool, spa, and other recreational amenities to serve guests visiting the tiger reserve area.
The resort’s strategic location offers convenient access with Nagpur Airport approximately 85 km away and Nagpur Railway Station about 62 km from the property. Road connectivity provides options for public and private transportation to the facility.
This signing represents Lemon Tree Hotels’ continued expansion in the wildlife tourism segment, where the company already operates five properties. The addition strengthens the group’s presence in Maharashtra, bringing their total to 15 operational hotels in the State with 10 additional properties in the development pipeline.
Vilas Pawar, CEO of Managed & Franchise Business at Lemon Tree Hotels, emphasised the company’s commitment to enhancing their wildlife portfolio through this new property.
Pench National Park, spanning 758 square km across Madhya Pradesh and Maharashtra, gained recognition as a national park in 1975 and became a tiger reserve in 1992. The park served as inspiration for Rudyard Kipling’s “The Jungle Book.”
Published on August 28, 2025
A recent ruling by the Hawai‘i Supreme Court has clarified the legal requirements for hotels and restaurants regarding service charges, impacting the hospitality industry both locally and internationally.
Court decision mandates clear disclosure of service charge allocations
In a significant legal development, the Hawai‘i Supreme Court ruled that hotels and restaurants must provide explicit information about how service charges are distributed.
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The case, Rodriguez v. Mauna Kea Resort LLC, involved a class-action lawsuit filed by over 100 hotel workers who alleged that their employers failed to adequately disclose the allocation of service charges.
The court determined that vague statements, such as “a portion” of the service charge going to employees, do not meet the legal standard set by Hawai‘i Revised Statutes § 481B-14.
The statute requires businesses to either distribute service charges directly to employees as tips or clearly disclose to customers if the charges are used for other expenses.
Implications for global hotel operations
This ruling has broader implications for hotel operations worldwide. International hotel chains operating in Hawai‘i must now ensure that their service charge policies comply with the state’s legal requirements.
Failure to provide clear disclosures could lead to legal challenges and potential financial liabilities. Hotels are advised to review and update their service charge practices to align with the court’s interpretation of the law.
Industry response and future considerations
The hospitality industry is closely monitoring the impact of this decision. Industry associations and legal experts are expected to provide guidance to help businesses navigate the new requirements.
Hotels may need to adjust their billing practices, staff training, and customer communication strategies to ensure compliance and maintain transparency with guests.
As legal standards evolve, staying informed and adaptable will be crucial for the continued success and reputation of hotel establishments.
This case underscores the importance of clear communication and adherence to legal standards in the hospitality industry. Hotels worldwide should take proactive steps to review their service charge policies and ensure they meet legal requirements to avoid potential legal disputes and maintain customer trust.
MUMBAI, AUGUST 28, 2025:Indian Hotels Company (IHCL), India’s largest hospitality company today announced the signing of aGingerhotel inSatara, Maharashtra. This is a greenfield project.
Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said, “Satara’s convergence of education, healthcare and business attracts a steady stream of demand, making it an ideal fit for Ginger’s expansion. This signing is in line with IHCL’s approach to expanding its brandscape into such high-potential markets. We are delighted to partner withMs. Vedantika Raje Bhonslefor this project.”
Strategically located in the Satara MIDC area, the125-key Ginger Satarawill embody the brand’s lean luxe ethos combining stylish design with seamless service. The hotel will featureQmin, Ginger’s signature all-day diner, a conference hall, and a well-equipped gym, catering to both business and leisure travellers.
Ms. Vedantika Raje Bhonslesaid, “We are pleased to partner with IHCL to bring Ginger to Satara. This development significantly contributes to the city’s growing infrastructure and hospitality landscape.”
The industrial district of Satara, renowned for its scenic and cultural attractions, is home to the well -established Maharashtra Industrial Development Corporation (MIDC) and companies across sectors like paper, paints and consumer goods.
With the addition of this hotel, IHCL will have43hotels inMaharashtra, including16under development.
About the owner
Ms. Vedantika Raje Bhonsle is actively engaged in real estate development in Satara, overseeing residential projects that contribute to the region’s infrastructure.
About The Indian Hotels Company Limited
The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj – the iconic brand for the most discerning travellers and ranked as World’s Strongest Hotel Brand 2025 and India’s Strongest Brand 2025 as per Brand Finance; Claridges Collection, a curated set of boutique luxury hotels merging elegance with historical charm; SeleQtions, a named collection of hotels; Tree of Life, private escapes in tranquil settings; Vivanta, sophisticated upscale hotels; Gateway, full-service hotels designed to be your gateway to exceptional destinations and Ginger, which is revolutionising the lean luxe segment.
Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel – The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of over 550 hotels including 215 under development globally across 4 continents, 14 countries and in over 150+ locations. The Indian Hotels Company Limited (IHCL) is India’s largest hospitality company by market capitalization. It is listed on the BSE and NSE.
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