EIHOTEL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

🏨 Core Financials Insight

Profitability & Growth

EPS: ₹11.8 ➜ consistent earnings per share

PAT growth: ₹269 Cr vs ₹266 Cr ➜ flat quarter-on-quarter, but healthy YoY trend

Efficiency Metrics

ROE: 18.0% | ROCE: 23.4% ➜ solid return ratios for hospitality segment

Debt & Dividend

Debt-to-equity: 0.06 ➜ exceptionally low debt ➜ strong balance sheet

Dividend Yield: 0.40% ➜ low yield, but steady payouts

📌 Takeaway: Stable financial foundation with commendable return metrics and low leverage.

📊 Valuation Overview

Metric Value Commentary

P/E Ratio 30.9 discounted versus industry PE (37.4) ➜ relatively undervalued

P/B Ratio ~5.13 (₹379 / ₹73.8) ➜ reflects brand and asset-heavy nature

PEG Ratio 0.33 low PEG ➜ price not fully factoring in expected growth

💡 Verdict: Appears undervalued relative to industry peers. PEG supports growth optimism.

🧭 Business Model & Strategic Advantage

Premium hospitality brand with roots in luxury and business travel

Operates Oberoi and Trident brands — recognized for service quality

Moats

Heritage brand with loyal clientele

Prime property locations ➜ pricing power and asset appreciation

Efficient operating model ➜ high EBITDA margins vs peers

📌 Challenges

Vulnerability to tourism cycles, economic slowdowns

High fixed costs ➜ demand dependency

Competitive pressure from new-age and global hotel chains

📈 Technical Setup

RSI: 54 ➜ neutral ➜ room for upside

MACD: 3.62 ➜ positive crossover ➜ bullish bias

Price near DMA 50 & 200 ➜ consolidation base ➜ ready for breakout

✅ Suggested Entry Zone: ₹365–₹375 📦 Ideal for accumulation near support — wait for volume confirmation or breakout

🔮 Long-Term Holding View

Tailwinds from

Rising domestic luxury travel and destination weddings

Tourism policy incentives and infrastructure improvements

Global brand positioning and digital booking channels

💼 Suitable for

Investors seeking hospitality sector exposure with minimal debt

Long-term capital appreciation linked to India’s travel boom

📊 Monitor

Quarterly occupancy rates and ARR (average room rate)

Expansion into Tier 1 cities and international hubs

Shareholder actions (like stake dilution or dividend changes)

Curious how EIH stacks up against Lemon Tree or Indian Hotels on operational margins and asset utilization? I can whip up a comparison matrix to spotlight where the luxury lies.

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