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EIHOTEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | EIHOTEL | Market Cap | 20,220 Cr. | Current Price | 324 ₹ | High / Low | 435 ₹ |
| Stock P/E | 29.0 | Book Value | 68.6 ₹ | Dividend Yield | 0.46 % | ROCE | 21.9 % |
| ROE | 17.5 % | Face Value | 2.00 ₹ | DMA 50 | 332 ₹ | DMA 200 | 358 ₹ |
| Chg in FII Hold | 0.23 % | Chg in DII Hold | -0.04 % | PAT Qtr | 219 Cr. | PAT Prev Qtr | 97.6 Cr. |
| RSI | 49.3 | MACD | -3.47 | Volume | 2,74,839 | Avg Vol 1Wk | 3,34,114 |
| Low price | 300 ₹ | High price | 435 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.04 |
| 52w Index | 17.4 % | Qtr Profit Var | -1.24 % | EPS | 10.7 ₹ | Industry PE | 28.4 |
📊 Core Financials
- Revenue growth: Strong, PAT improved to 219 Cr. from 97.6 Cr.
- Profit margins: Healthy EPS of 10.7 ₹, ROE at 17.5%, ROCE at 21.9%
- Debt ratios: Very low debt-to-equity at 0.04, indicating strong balance sheet
- Cash flows: Positive profitability supports healthy cash generation
- Return metrics: ROE and ROCE well above industry averages
💹 Valuation Indicators
- P/E Ratio: 29.0, slightly above industry PE of 28.4 but justified by strong returns
- P/B Ratio: ~4.72 (324 ₹ / 68.6 ₹), moderate given growth prospects
- PEG Ratio: 0.28, attractive and suggests undervaluation relative to growth
- Intrinsic Value: Current price close to fair value, potential upside if earnings sustain
🏢 Business Model & Competitive Advantage
- Operates in hospitality sector under Oberoi brand, known for premium positioning
- Strong competitive advantage through brand reputation and luxury service quality
- Industry tailwinds from tourism recovery and rising domestic travel demand
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 310–325 ₹ range, close to current levels
- Long-Term Holding: Recommended, strong fundamentals and brand advantage support sustained growth
✅ Positive
- Strong ROE (17.5%) and ROCE (21.9%) indicate efficient capital use
- Low debt-to-equity ratio (0.04) ensures financial stability
- PEG ratio of 0.28 highlights undervaluation relative to growth
⚠️ Limitation
- P/B ratio relatively high at 4.72
- Quarterly profit variation (-1.24%) shows some volatility
📰 Company Negative News
- Slight decline in quarterly profit variation (-1.24%)
- DII holding decreased (-0.04%)
🌟 Company Positive News
- PAT surged to 219 Cr. from 97.6 Cr. in previous quarter
- FII holding increased (+0.23%)
- Dividend yield of 0.46% adds shareholder value
🏭 Industry
- Hospitality industry PE at 28.4, aligned with company valuation
- Sector benefits from tourism growth, rising disposable incomes, and premium travel demand
🔎 Conclusion
- EIHOTEL demonstrates strong fundamentals with robust profitability, efficient capital use, and minimal debt
- Valuation is fair with PEG ratio suggesting undervaluation relative to growth
- Recommended for long-term holding, with entry near current levels (310–325 ₹) offering attractive risk-reward