Oriental Hotels Limited Intrinsic Value
ORIENTHOT · Consumer Services · Current price ₹151.95
Is Oriental Hotels Limited undervalued?
We estimate the fair value of Oriental Hotels Limited at ₹41 per share, against a market price of ₹141. That puts the share price about -71.0% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Residual income (excess return on book) (₹41). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Oriental Hotels Limited spans ₹37 to ₹45. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹141 against an estimated value of ₹41, Oriental Hotels Limited trades at -71.0%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for Oriental Hotels Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹37 – ₹45
Why this method for this business
Residual income is the most appropriate model for a hotel business with low ROE and no durable moat, focusing on book value and excess returns over cost of equity.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book value plus the present value of returns earned above the 10.6% cost of equity
- dcf: Not suitable for a cyclical, asset-heavy business with erratic cash flows
- relative_pe: Not applicable due to lack of forward estimates and sector-specific data
What was missing
- Forward estimates
- Detailed operational performance metrics
- Long-term synergy realization from the merger
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 8.6%
- Book value / share
- 42.7 ₹
computed
reported
- Cost of equity
- 10.6%
building-block
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Oriental Hotels Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 15 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Oriental Hotels Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.