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EIHOTEL - Fundamental Analysis: Financial Health & Valuation

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Rating: 4.2

Last Updated Time : 25 May 26, 12:02 am

Fundamental Rating: 4.2

Stock Code EIHOTEL Market Cap 19,971 Cr. Current Price 319 ₹ High / Low 435 ₹
Stock P/E 28.6 Book Value 68.6 ₹ Dividend Yield 0.47 % ROCE 21.9 %
ROE 17.5 % Face Value 2.00 ₹ DMA 50 322 ₹ DMA 200 344 ₹
Chg in FII Hold 0.46 % Chg in DII Hold -0.25 % PAT Qtr 219 Cr. PAT Prev Qtr 97.6 Cr.
RSI 47.2 MACD 0.27 Volume 47,895 Avg Vol 1Wk 1,27,755
Low price 271 ₹ High price 435 ₹ PEG Ratio 0.27 Debt to equity 0.04
52w Index 29.2 % Qtr Profit Var -1.24 % EPS 10.7 ₹ Industry PE 27.2

📊 Financials: EIHOTEL demonstrates strong fundamentals. Quarterly PAT rose to 219 Cr from 97.6 Cr, showing robust earnings momentum. ROCE at 21.9% and ROE at 17.5% indicate efficient capital utilization and profitability. EPS stands at 10.7 ₹, reflecting healthy earnings. Debt-to-equity is very low at 0.04, suggesting minimal leverage and strong balance sheet health.

💰 Valuation: The stock trades at a P/E of 28.6, slightly above the industry average of 27.2, but justified by strong profitability and growth. Book value is 68.6 ₹, with current price at 319 ₹, implying a P/B ratio of ~4.6. PEG ratio of 0.27 indicates attractive growth-adjusted valuation. Intrinsic value appears close to current levels, suggesting fair valuation.

🏨 Business Model & Health: EIHOTEL operates in hospitality, benefiting from premium positioning and brand strength. Competitive advantage lies in luxury offerings and strong brand recognition. Overall health is solid, supported by consistent profitability, low debt, and strong return metrics.

📈 Entry Zone: RSI at 47.2 indicates neutral momentum. Support is near 271 ₹, resistance at 435 ₹. Entry around 300–310 ₹ offers a favorable risk-reward profile. Long-term holding is attractive given strong fundamentals, low debt, and industry growth potential.

Positive

  • 🏨 [Strong Brand](ca://s?q=EIHOTEL_brand_strength): Premium positioning in hospitality sector.

  • 📈 [Profitability](ca://s?q=EIHOTEL_profitability): High ROCE (21.9%) and ROE (17.5%).

  • 💸 [Low Debt](ca://s?q=EIHOTEL_debt_levels): Debt-to-equity ratio of 0.04 ensures financial stability.

Limitation

  • 📉 [Valuation](ca://s?q=EIHOTEL_valuation): P/E slightly above industry average.

  • ⚠️ [Cyclicality](ca://s?q=EIHOTEL_industry_cyclicality): Hospitality sector sensitive to economic cycles.

  • 📊 [Quarterly Variation](ca://s?q=EIHOTEL_quarterly_variation): Profit variation (-1.24%) indicates earnings volatility.

Company Negative News

  • 📉 [DII Outflow](ca://s?q=EIHOTEL_DII_outflow): Domestic institutions reduced holdings by -0.25%.

Company Positive News

  • 📈 [FII Inflow](ca://s?q=EIHOTEL_FII_inflow): Foreign investors increased holdings by 0.46%.

  • 💹 [Profit Growth](ca://s?q=EIHOTEL_profit_growth): PAT surged to 219 Cr from 97.6 Cr.

Industry

  • 🌍 [Hospitality Growth](ca://s?q=Indian_hospitality_growth): Industry expanding with rising tourism and premium demand.

  • 📊 [Industry PE](ca://s?q=Hospitality_industry_PE): Sector average P/E is 27.2, close to EIHOTEL’s valuation.

Conclusion

✅ EIHOTEL shows strong fundamentals, profitability, and minimal debt, making it a fundamentally sound investment. While valuations are slightly above industry average, growth prospects and brand strength justify it. Entry around 300–310 ₹ is favorable, and long-term holding is recommended given the company’s resilience and industry outlook.

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