Goal: ₹1,039
CMP: ₹765.90
Chalet Resorts reported in-line Q3, with slight miss on profitability as a consequence of higher-than-expected depreciation and curiosity prices. Segmental financials are largely in line for each hospitality and industrial lease rental segments. Chalet reported ₹96.50 crore revenue on the PAT stage versus our estimate of ₹110 crore revenue.
We stay structurally optimistic on Chalet, given visibility on wholesome room addition until FY29. Wholesome money era FY25 onwards will give it gunpowder to harness inorganic development alternatives.
Mumbai Metropolitan Area (MMR) income contribution dropped from 63 per cent to 56 per cent, reflecting a strategic diversification in direction of different key markets, with Hyderabad and NCR markets offsetting the dip. ADR in MMR grew 13 per cent y-o-y to ₹12,972, underscoring sturdy pricing energy, whereas occupancy declined 400bps to 74 per cent, as Chalet let go off some low-paying shoppers.
We reiterate Purchase with a decrease goal worth of ₹1,039. With sturdy money era from FY25, we anticipate Chalet to pursue inorganic development alternatives. Sturdy promoter pedigree – the Raheja Group – ensures operational experience, administration bandwidth and monetary flexibility. Chalet’s tie-ups with world manufacturers guarantee continued excessive occupancy and wholesome ARR.
