EIH Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
EIH Ltd's management has expressed cautious optimism regarding the company's growth trajectory, emphasizing strong domestic demand and resilience in Average Room Rates (ARR) despite geopolitical tensions impacting international bookings. The company is poised for revenue acceleration, supported by a robust pipeline of new hotel openings and a strategic focus on premium positioning in the luxury segment. Vista's financial outlook reflects this optimism, forecasting improved margins and revenue growth as the company capitalizes on favorable demand-supply dynamics in the hospitality sector. The expected CAGR of over 8% in the industry aligns with EIH's growth plans, particularly as domestic tourism continues to thrive. However, potential headwinds include ongoing geopolitical disruptions and execution risks related to new developments. Over the next 12-24 months, EIH's strategic initiatives, including the opening of new properties and a focus on asset quality, present significant opportunities for growth, while the company must navigate external challenges that could impact occupancy rates and overall performance
Why We Like This Stock
- Strong domestic demand is expected to drive revenue growth and improve margins
- A robust pipeline of new hotel openings will enhance market share and competitive positioning
- Management's focus on premium pricing in the luxury segment supports long-term profitability
Things To Watch Out For
- Geopolitical tensions may continue to disrupt international travel and occupancy rates
- Execution risks related to new developments could delay growth plans
- Potential cost overruns and delays in renovations may impact financial performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,511 | 2,743 | 2,940 | 3,136 | 3,526 |
| Profit Before Tax (Cr.) | 924 | 1,067 | 1,081 | 1,133 | 1,279 |
| PBT Margin | 36.8% | 38.9% | 3676.9% | 36.1% | 36.3% |
| Net Profit (Cr.) | 684 | 834 | 797 | 839 | 913 |
| Earnings Per Share | 10.3 | 12.9 | 12.3 | 12.9 | 14.6 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
EIH Limited, together with its subsidiaries, owns and manages hotels and cruisers under the Oberoi and Trident brand names in India and internationally. It owns and operates Oberoi Flight Services and Oberoi Airport Services, which provide catering and other services to international airlines; operates restaurants and lounges in various airports; and provides air charter, car rental, and project management services, as well as operates the Maidens Hotel in Delhi. The company also engages in renting of investment properties. EIH Limited was incorporated in 1949 and is based in Delhi, India.