EIHOTEL - Investment Analysis

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

Investment Rating: 4.1

🏨 Fundamental Analysis: EIH Ltd. (EIHOTEL)

EIH Ltd., the flagship company of The Oberoi Group, operates premium hotels and resorts. It benefits from strong brand equity, rising tourism, and post-pandemic hospitality recovery. The fundamentals suggest solid long-term potential with attractive valuation metrics.

Metric Value Implication

P/E Ratio 30.9 Reasonable vs. industry PE of 37.4 — slightly undervalued

PEG Ratio 0.33 Excellent — strong growth at a discounted valuation

ROCE / ROE 23.4% / 18.0% Strong — efficient capital deployment

Dividend Yield 0.40% Modest — not a major income play

Debt-to-Equity 0.06 Very low — financially sound

EPS ₹11.8 Decent earnings base

Qtr Profit Var +26.5% Healthy growth momentum

FII/DII Holding Change -0.16% / +0.14% Neutral sentiment — no major institutional shift

📉 Technical Analysis

Current Price: ₹379

DMA 50 / DMA 200: ₹372 / ₹372 → Flat trend; consolidation phase

RSI: 54.0 → Neutral zone; room for upside

MACD: +3.62 → Mild bullish signal

Volume: Below average — low conviction in recent move

💰 Ideal Entry Price Zone

₹350–₹370

This range offers a valuation cushion and aligns with DMA support

Avoid fresh entry above ₹400 unless volume and momentum improve

📈 Long-Term Investment Outlook

Strengths

PEG < 0.5 — undervalued growth

Strong ROCE and ROE — efficient operations

Debt-light structure — financial flexibility

Brand strength and premium positioning — pricing power

Risks

EPS still modest — earnings base needs expansion

Volume weakness — lack of strong buying interest

FII trimming — possibly due to sector cyclicality

EIH Ltd. is a quality hospitality play with strong fundamentals and attractive valuation. Ideal for long-term investors seeking exposure to India’s tourism and luxury travel growth.

🏁 Exit Strategy / Holding Period

If you already hold EIHOTEL

Holding Period: 3–5 years to benefit from hospitality sector expansion

Exit Strategy

Consider partial profit booking near ₹440–₹450 (recent high)

Reassess if ROCE drops below 15% or PEG rises above 1.5

Hold if earnings growth continues and valuation remains reasonable

Would you like a comparison with Indian Hotels (Taj), Lemon Tree, or Chalet Hotels to explore relative positioning in the hospitality sector?

Edit in a page