EIHOTEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 📊 Strong return metrics — ROCE at 21.9% and ROE at 17.5% indicate efficient capital deployment.
• 💰 Low debt-to-equity ratio of 0.04 reflects a conservative capital structure and financial stability.
• 📈 PEG ratio of 0.32 suggests attractive valuation relative to growth potential.
• 📈 DII holding increased by 0.39%, showing rising domestic institutional interest.
• 📈 Trading above DMA50 and DMA200 (₹387 and ₹380), indicating medium-term bullish trend.

⚠️ Limitation

• 📉 P/E of 34.0 is slightly below industry average (35.4), but still elevated for a cyclical sector.
• 📉 Dividend yield of 0.38% offers limited passive income.
• 📉 Quarterly PAT declined from ₹247 Cr. to ₹134 Cr., indicating margin pressure or seasonal impact.
• 📉 Volume below 1-week average may suggest reduced short-term investor interest.

📰 Company Negative News

• 📉 FII holding nearly flat with only a 0.01% increase, showing cautious foreign sentiment.
• 📉 Quarterly profit variation of 54.0% reflects earnings volatility.

🌟 Company Positive News

• 📈 MACD at 0.67 and RSI at 55.7 indicate stable technical momentum.
• 📈 52-week performance up 65.1%, showing strong price appreciation and investor confidence.

🏨 Industry

• 🏨 EIHOTEL operates in the luxury hospitality segment, benefiting from tourism recovery, premium travel demand, and brand equity.
• 📊 Industry P/E of 35.4 reflects high growth expectations and cyclical exposure to travel and leisure trends.

🧭 Conclusion

• 📌 Suggested entry zone: ₹375–₹385, near DMA200 and below recent highs for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, low debt, and sectoral tailwinds.
• ⚖️ Monitor earnings consistency and foreign investor sentiment before aggressive accumulation.