SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : EIH Ltd

BSE: 500840 NSE: EIHOTEL ISIN: INE230A01023
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does EIH Ltd belong to?
EIH Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is EIH Ltd a good quality company?
EIH Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is EIH Ltd undervalued or overvalued?
EIH Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is EIH Ltd a good buy now?
EIH Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of EIH Ltd?
EIH Ltd revenue growth is 9.4% for FY-2025 , which is below its 5 year CAGR of 12.2% , indicating slower growth.
Q.2 Gross Profit margin of EIH Ltd?
EIH Ltd Gross profit margin which is the profit after deduction of direct costs, is 41.2% for FY-2025 , which is above its 5 year median of 33.6% , indicating increasing margins.
Q.3 Operating Profit Margin of EIH Ltd?
EIH Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.04% for FY-2025 , which is above its 5 year median of 31.86% indicating increasing margins.
Q.4 Net Profit Margin of EIH Ltd?
EIH Ltd Net Profit Margin is 31.3% for FY-2025 , is above with its 5 year median of 18.05%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 41.2 33.6
Operating Profit Margin 33.04 31.86
Net Profit Margin 31.3 18.05
Q.5 Return on Asset of EIH Ltd?
EIH Ltd Return on Asset is 15.27%, which is above its 5 year historical median of 8.54%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of EIH Ltd?
EIH Ltd Return on equity is 19.23% for FY-2025 , which is above its historical median of 10.8%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of EIH Ltd?
EIH Ltd Return on capital employed is 25.03% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of EIH Ltd?
EIH Ltd Cash conversion cycle is -29 days, below its historical median of -20 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.49 0.47
ROE 19.23 10.8
ROCE 25.03 14.75
Cash Conversion Cycle -29 days -20 days
Q.9 Debt to Equity ratio of EIH Ltd?
EIH Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.09 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of EIH Ltd?
EIH Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of EIH Ltd?
Promoters hold 32.85% of the EIH Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of EIH Ltd vs industry peers?
EIH Ltd revenue CAGR is 12.19% , compared to the industry median CAGR of 3.58% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,399.9 44.4
Gross Profit 988.8 5.5
Operating Profit 784 5.6
Net Profit 751 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.49 0.28
ROE 19.23 3.09
ROCE 25.03 6.11
Cash Conversion Cycle (days) -29.06 -

Valuation & price assessment

Q.1 Stock return of EIH Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.6% 29.8% 22.8% -14.1%
Q.3 Valuation ratios of EIH Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 29.84 0.00 37.08
Price to Book 4.46 1.87 1.71
Price to Sales 7.82 4.80 5.24
EV to EBITDA 18.1 35.41 17.33

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×