EIH Associated Hotels
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
EIH Associated Hotels is navigating a complex landscape marked by geopolitical tensions and operational challenges, yet management's commentary indicates a resilient outlook driven by strategic capacity expansions and strong rate-led growth. The company's focus on enhancing its portfolio through new developments and renovations positions it favorably within the recovering Indian hospitality sector, which is expected to see a CAGR of over 8% in the coming years. Vista's financial outlook reflects early revenue recovery and improving margins, supported by the company's competitive positioning and consistent outperformance in RevPAR growth. However, potential headwinds from moderated occupancy rates and external risks necessitate cautious monitoring. Over the next 12-24 months, EIH's ability to execute its expansion plans and adapt to market conditions will be critical. Key opportunities include leveraging domestic tourism trends and enhancing guest experiences, while watchpoints include geopolitical volatility and execution risks associated with ongoing projects
Why We Like This Stock
- Strong rate-led growth with ARR up ~10%, indicating robust pricing power
- Strategic capacity expansions, including new hotel developments and renovations, enhancing competitive positioning
- Consistent outperformance in RevPAR growth, reflecting effective management and market adaptability
Things To Watch Out For
- Potential headwinds from moderated occupancy rates and subdued air traffic in the near term
- Geopolitical tensions may introduce volatility impacting revenue and operational stability
- Execution risks related to the timely completion of ongoing expansion projects
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 385 | 408 | 384 | 397 | 438 |
| Profit Before Tax (Cr.) | 108 | 129 | 121 | 130 | 142 |
| PBT Margin | 28.2% | 31.6% | 3144.5% | 32.8% | 32.4% |
| Net Profit (Cr.) | 80 | 99 | 92 | 99 | 108 |
| Earnings Per Share | 13.2 | 16.3 | 15.1 | 16.2 | 17.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
EIH Associated Hotels Limited owns, operates, and manages luxury hotels in India. The company operates the hotel and resort namely The Oberoi Cecil at Shimla and The Oberoi Rajvilas at Jaipur; and hotels under the Trident name in Agra, Bhubaneswar, Chennai, Cochin, Jaipur, and Udaipur. The company was formerly known as Oberoi Associated Hotels Limited and changed its name to EIH Associated Hotels Limited in November 1996. EIH Associated Hotels Limited was incorporated in 1983 and is based in Delhi, India.