⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
EIHOTEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | EIHOTEL | Market Cap | 19,906 Cr. | Current Price | 317 ₹ | High / Low | 435 ₹ |
| Stock P/E | 28.4 | Book Value | 68.6 ₹ | Dividend Yield | 0.47 % | ROCE | 21.9 % |
| ROE | 17.5 % | Face Value | 2.00 ₹ | DMA 50 | 352 ₹ | DMA 200 | 371 ₹ |
| Chg in FII Hold | 0.23 % | Chg in DII Hold | -0.04 % | PAT Qtr | 97.6 Cr. | PAT Prev Qtr | 134 Cr. |
| RSI | 30.4 | MACD | -13.7 | Volume | 1,20,619 | Avg Vol 1Wk | 5,49,565 |
| Low price | 293 ₹ | High price | 435 ₹ | PEG Ratio | 0.27 | Debt to equity | 0.04 |
| 52w Index | 16.9 % | Qtr Profit Var | -15.8 % | EPS | 11.0 ₹ | Industry PE | 32.6 |
📊 Core Financials
- Revenue growth: Stable but recent quarterly PAT declined (97.6 Cr vs 134 Cr).
- Profit margins: Healthy with EPS at 11.0 ₹, though slightly pressured.
- Debt ratios: Very strong, debt-to-equity at 0.04 indicates negligible leverage.
- Cash flows: Supported by consistent profitability and low debt burden.
- Return metrics: ROCE 21.9 %, ROE 17.5 % — strong efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 28.4, slightly below industry average (32.6), fair valuation.
- P/B ratio: Current Price / Book Value ≈ 4.6, moderately expensive relative to assets.
- PEG ratio: 0.27, suggests undervaluation relative to growth.
- Intrinsic value: Reasonable, supported by strong returns and low debt.
🏢 Business Model & Competitive Advantage
- Operates in hospitality sector with luxury hotels under Oberoi brand.
- Strong brand recognition and premium positioning provide competitive edge.
- Low debt structure enhances resilience against cyclical downturns.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 293–310 ₹ levels, close to 52-week low.
- Long-term holding: Favorable due to strong ROE/ROCE, brand strength, and low leverage; suitable for patient investors.
Positive
- Strong ROCE (21.9 %) and ROE (17.5 %).
- Low debt-to-equity ratio (0.04).
- PEG ratio at 0.27 indicates undervaluation relative to growth.
- FII holdings increased (+0.23 %).
Limitation
- Quarterly profit declined (-15.8 % variation).
- Stock trading below DMA 50 and DMA 200, indicating weak momentum.
- Dividend yield at 0.47 % is modest.
Company Negative News
- Recent quarterly PAT dropped from 134 Cr to 97.6 Cr.
- Technical indicators weak: RSI at 30.4 (oversold), MACD negative.
Company Positive News
- Strong brand positioning in luxury hospitality.
- Consistent profitability with EPS at 11.0 ₹.
- Low debt ensures financial stability.
Industry
- Hospitality industry recovering post-pandemic, driven by tourism and business travel.
- Industry PE at 32.6, slightly higher than EIHOTEL’s P/E, suggesting relative undervaluation.
Conclusion
- EIHOTEL shows strong fundamentals with high ROE/ROCE and minimal debt.
- Valuation appears fair to slightly undervalued compared to industry peers.
- Entry near support levels (293–310 ₹) is attractive; long-term holding recommended given brand strength and financial health.
Would you like me to also create a peer comparison HTML report with other hospitality stocks like Indian Hotels and Lemon Tree to highlight relative strengths?