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Today's prices ask more of Indian Hotels than of IndiGo.
At current prices, buyers of IndiGo are assuming about 17% growth against 24% in its own record; for Indian Hotels it is 32% against 24%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: IndiGo is worth about 1.7 times Indian Hotels on the stock market.
- Record: IndiGo has grown revenue faster: IndiGo compounded at about 18% a year (FY2018–FY2026) and Indian Hotels at about 11% (FY2018–FY2026).
- What to watch: passenger growth at IndiGo; room rates and occupancy at Indian Hotels.
| IndiGo | Indian Hotels | |
|---|---|---|
| Price | ₹5,587 | ₹890 |
| Market cap | ₹2.16L Cr | ₹1.27L Cr |
| P/E | — | 57.3 |
| P/B | 30.99 | 9.71 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
A low-cost airline that took over the market
InterGlobe Aviation runs IndiGo, India's largest airline by far, with a majority share of domestic passengers. Founded by Rahul Bhatia and Rakesh Gangwal, it began flying in 2006 with a simple low-cost model: one aircraft family, quick turnarounds and high utilisation.
Taj, Vivanta and Ginger
The Indian Hotels Company, part of the Tata group, opened the Taj Mahal Palace in Mumbai in 1903. Today it runs Taj, Vivanta, SeleQtions and the budget Ginger brand across India and abroad.
02The records side by side
IndiGo has grown revenue faster: IndiGo compounded at about 18% a year (FY2018–FY2026) and Indian Hotels at about 11% (FY2018–FY2026). By revenue, IndiGo is about 8.8 times the size of Indian Hotels. IndiGo lost the equivalent of 2.8% of revenue in FY2026; Indian Hotels kept 23.2% of revenue as net profit in FY2026 — a sign of very different business models. IndiGo reported a net loss in FY2020, FY2021, FY2022, FY2023 and FY2026; Indian Hotels reported a net loss in FY2021 and FY2022.
Full ten-year tables and charts are on each company's page: IndiGo · Indian Hotels.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Passenger growthIndia's air travel is growing fast from a low base.
- Yields and fuelFares minus fuel costs drive profit.
- Room rates and occupancyAverage rates have risen sharply since the pandemic.
- Management contractsAsset-light growth adds fees with little capital.
05What could go wrong
- Fuel pricesJet fuel is the biggest cost.
- CurrencyA weaker rupee raises dollar costs and lease liabilities.
- Travel shocksPandemics or crises can empty hotels quickly.
- New supplyMore hotels could slow rate growth.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is IndiGo or Indian Hotels better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, IndiGo trades at 30.99 times book value, and Indian Hotels at 57.3 times earnings and 9.71 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between IndiGo and Indian Hotels?
InterGlobe Aviation runs IndiGo, India's largest airline by far, with a majority share of domestic passengers. The Indian Hotels Company, part of the Tata group, opened the Taj Mahal Palace in Mumbai in 1903.
Are IndiGo and Indian Hotels valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for IndiGo and Indian Hotels?
Worked backwards from the share price, IndiGo needs about 17% growth and Indian Hotels about 32% growth, against 24% and 24% in their own records.