EIHOTEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | EIHOTEL | Market Cap | 19,946 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 | 321 ₹ | DMA 200 | 347 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.25 % | PAT Qtr | 219 Cr. | PAT Prev Qtr | 97.6 Cr. |
| RSI | 50.0 | MACD | 4.13 | Volume | 1,38,871 | Avg Vol 1Wk | 1,68,671 |
| 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 | 28.8 |
Financials & Valuation:
EIHOTEL demonstrates solid fundamentals. ROCE (21.9%) and ROE (17.5%) reflect strong operational efficiency. EPS stands at 10.7 ₹, with quarterly PAT rising to 219 Cr. from 97.6 Cr. previously, showing healthy profitability momentum. The P/E ratio of 28.6 is aligned with the industry average (28.8), suggesting fair valuation.
Valuation Indicators:
Book Value is 68.6 ₹, while the current price is 319 ₹, indicating a premium valuation but supported by strong returns. Dividend yield of 0.47% provides modest income support. PEG ratio of 0.27 suggests undervaluation relative to growth prospects.
Business Model & Health:
EIHOTEL operates in hospitality, benefiting from rising tourism and premium hotel demand. Low debt-to-equity (0.04) strengthens financial resilience. FII holdings increased (+0.46%), reflecting foreign investor confidence, though DII holdings declined (-0.25%).
Entry Zone & Holding Guidance:
Technically, support lies around 315–325 ₹, with resistance near 345–355 ₹. Entry is favorable near support levels for swing trades. Long-term holding is justified given strong fundamentals, low debt, and industry tailwinds.
Positive
- Strong ROCE (21.9%) and ROE (17.5%).
- PEG ratio (0.27) indicates undervaluation relative to growth.
- Low debt-to-equity (0.04) ensures financial stability.
- Quarterly PAT growth reflects operational strength.
Limitation
- Dividend yield remains modest at 0.47%.
- DII holdings declined (-0.25%), showing reduced domestic support.
- Current price trades at a premium to book value.
Company Negative News
- Slight decline in DII holdings.
- Profit variation (-1.24%) indicates minor volatility.
Company Positive News
- Quarterly PAT surged to 219 Cr. from 97.6 Cr.
- FII holdings increased (+0.46%), showing foreign confidence.
- Strong operational efficiency metrics.
Industry
- Hospitality sector benefits from rising tourism and premium hotel demand.
- Industry PE (28.8) aligns with EIHOTEL’s valuation, suggesting fair pricing.
- Long-term growth supported by urbanization and travel trends.
Conclusion
EIHOTEL is fundamentally strong with efficient capital use, low debt, and fair valuation. Entry near 315–325 ₹ offers a favorable risk-reward setup. Long-term investors can hold with confidence, supported by industry growth and strong profitability.
Would you like me to extend this into a sector overlay comparing EIHOTEL with peers like Indian Hotels (INDHOTEL) and Lemon Tree Hotels, so you can benchmark relative strength within the hospitality sector?