EIH Associated Hotels
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
EIH Associated Hotels is positioned for a recovery in revenue growth, supported by strong domestic demand and strategic expansion initiatives. Management's bullish outlook for FY27 is underpinned by a favorable supply-demand imbalance in the hospitality sector, particularly in the MICE segment, which is expected to drive RevPAR growth. The company's focus on enhancing its luxury offerings through renovations and new properties, such as the upcoming Trident Vishakhapatnam, aligns with shifting consumer preferences towards experiential travel. However, potential headwinds from geopolitical tensions and aviation capacity constraints could impact occupancy rates and margins. Vista's financial outlook reflects a stable balance sheet and fair valuation, with an expected upside of approximately 13.9%. The hospitality industry is experiencing a sunrise growth phase, yet remains sensitive to external shocks, necessitating vigilance in monitoring geopolitical developments and consumer sentiment. Over the next 12-24 months, key opportunities include leveraging domestic tourism trends and enhancing brand positioning, while watchpoints include managing operational costs and navigating regulatory challenges
Why We Like This Stock
- Strong domestic travel demand is driving occupancy rates and RevPAR growth
- Strategic expansion initiatives, including new properties and renovations, enhance competitive positioning
- Management's focus on high-margin segments like MICE and weddings supports long-term profitability
Things To Watch Out For
- Geopolitical tensions and aviation capacity constraints pose risks to occupancy and revenue
- Potential cost pressures from new labor regulations could impact margins
- Subdued foreign tourist arrivals may challenge revenue growth in certain segments
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 385 | 408 | 384 | 395 | 424 |
| Profit Before Tax (Cr.) | 108 | 129 | 121 | 125 | 134 |
| PBT Margin | 28.2% | 31.6% | 31.4% | 31.8% | 31.7% |
| Net Profit (Cr.) | 80 | 99 | 92 | 95 | 102 |
| Earnings Per Share | 13.2 | 16.3 | 15.1 | 15.6 | 16.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
EIH Associated Hotels Limited operates as a luxury hospitality company in India. The company offers hotel services, including accommodation, food and beverages, laundry, spa, guest transfer, membership, loyalty program, and other allied services. It operates the Oberoi Cecil hotel in Shimla and the Oberoi Rajvilas resort in Jaipur, as well as hotels under the Trident name in Bhubaneswar, Chennai, Jaipur, Udaipur, and Agra. The company serves individuals, groups and discerning travelers, corporate clients, travel agencies, and event managers. 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.