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EIH Ltd. Stock Analysis

Small Cap
Evaluated by 1186 users | BSE: 500840 | NSE: EIHOTEL |
Hotel, Resort & Restaurants
EIH, incorporated in 1949, is engaged in business of operating and managing luxury hotels, restaurants, management contracts and travel and tours. This Delhi-based company is a flagship company of the Oberoi group. Formerly known as East India Hotels, the name was changed to EIH on November 1,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
EIH Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.96%5%3.58%4.07%4.09%4.74%4.48%4.04%4.17%5.11%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0281,1171,1341,2381,3351,4181,2761,3501,5431,350
Y-o-Y Gr. Rt.-8.7%1.5%9.2%7.8%6.2%-10%5.8%14.3%-12.5%
Adjusted EPS (Rs.) 1.262.071.281.591.672.092.131.951.82.33
Y-o-Y Gr. Rt.-64.3%-38.2%24.2%5%25.2%1.9%-8.5%-7.7%29.4%
Book Value per Share (Rs.) 40.4241.2841.1641.641.842.3743.9248.3248.9950.09
Adjusted Net Profit 73.512174.592.497.1122124114105136
Net Op. Cash Flow (Rs. Cr.) 236234134222247208198215212252
Debt to Cash Flow from Ops 3.571.192.91.270.851.231.492.042.261.65
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
EIH Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.1%0.2%1.9%-12.5%
Adjusted EPS 7.1%6.9%3%29.4%
Book Value per Share 2.43.74.52.3
Share Price -1.9% -7.8% -21.1% -54.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 3.674.622.833.513.664.564.564.083.74.71
Operating Profit Margin (%) 21.9522.8418.3419.4320.119.0915.216.4620.6515.87
Net Profit Margin (%) 7.1510.816.577.467.288.69.748.446.7910.06
Debt to Equity 0.360.120.160.120.090.10.120.160.170.14
Working Capital Days 173162173167159192248227208210
Cash Conversion Cycle 132733271612147-12
Entity Percentage Holding
Promoters 35.25%
Institutions 16.50%
Non-Institutions 48.26%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of EIH Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that EIH Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of EIH Ltd.'s performance infers:

EIH Ltd. earnings have grown by 6.9%, whereas share price has depreciated -7.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of EIH Ltd. share prices over the last 10 years. Here is what we found out:

EIH Ltd. share price has depreciated -3.6% annually over the past ten years.

EIH, incorporated in 1949, is engaged in business of operating and managing luxury hotels, restaurants, management contracts and travel and tours. This Delhi-based company is a flagship company of the Oberoi group. Formerly known as East India Hotels, the name was changed to EIH on November 1, 1996.

On January 1997, the company forayed into the  overseas market by opening a luxury resort -- The Oberoi Lombok -- in Indonesia. Later in November 2003, the company started Motor Vessel

EIH, incorporated in 1949, is engaged in business of operating and managing luxury hotels, restaurants, management contracts and travel and tours. This Delhi-based company is a flagship company of the Oberoi group. Formerly known as East India Hotels, the name was changed to EIH on November 1, 1996.

On January 1997, the company forayed into the  overseas market by opening a luxury resort -- The Oberoi Lombok -- in Indonesia. Later in November 2003, the company started Motor Vessel Vrinda, a luxury crusier in Kerala.

The company formed a tie-up with Hilton International to co-brand their Trident hotels in India in March 2004. After this various hotels were renamed such as Oberoi Towers, Mumbai re-branded as Hilton Towers, the Trident located Jaipur, Udaipur, Agra, Chennai, Cochin, Bhubaneshwar and Gurgaon was renamed as Trident Hilton from April 1, 2004. This agreement came to an end in April 2008.

The company service portfolio also includes airline catering, management of restaurants and airport bars, travel and tour services, car rentals, project management and corporate air charters. It operates its hospitality business under the luxury ‘Oberoi’ and five-star ‘Trident’ brands.

EIH owns and operates hotels namely Trident, Gurgaon, The Oberoi, Mumbai, The Oberoi Udaivilas, Udaipur, The Oberoi, New Delhi, The Oberoi Vanyavilas, Ranthambhore, The Oberoi, Bangalore, Trident, Nariman Point, Mumbai and The Oberoi Grand, Kolkata . The company also own Maidens Hotel located at Delhi.

Similarly, EIH owns and manages hotels through subsidiary/associate companies such as Trident, Chennai, Trident, AgraTrident, Jaipur, Trident, Udaipur, Trident, Cochin, Trident, Bhubaneswar, The Oberoi Amarvilas, Agra, The Oberoi Rajvilas, Jaipur, Wildflower Hall, Himalayas (An Oberoi Resort), The Oberoi Cecil, Shimla, The Oberoi, Sahl Hasheesh, The Oberoi, Bali, The Oberoi, Lombok and The Oberoi, Mauritius.

Under services, the company provides flight services to metros like Mumbai, Delhi, Chennai, Kolkata. It provides airport services to Mumbai, Delhi, Chennai, Kolkata, Cochin and Bangalore and also owns a printing press at Delhi and business aircraft charters.

In 2010 EIH International Ltd, a wholly owned subsidiary of EIH Ltd completed an acquisition of approximately 46% of the equity interest of Amex Investment Limited, in its international hotels joint venture company EIH Holdings Ltd. Pursuant to this acquisition, EIH Holdings Ltd is now a wholly owned subsidiary of EIH International Ltd.

Award and Recognition

Oberoi Hotels & Resorts was rated as the best chain (outside the United States) by the readers of Conde Nast Traveler magazine, Business Travel Awards, 2007.

Oberoi Hotels & Resorts was also rated the leading luxury hotel brand in Asia in a travel agents' poll at the World Travel Awards, 2007.

Trident Hotels was ranked as the ‘Best First Class Hotel Brand in India’ at the Galileo Express Travel World Awards 2008.

Mr. P.R.S. Oberoi, Chairman receives '2010 Corporate Hotelier of the World' award, November 2010
Four Oberoi hotels ranked amongst 30 best in the world and 10 best in Asia, October 2010
Wildflower Hall, Shimla in the Himalayas rated India's Leading Spa Resort, October 2010
The Oberoi Zahra, Luxury Nile Cruiser receives Award of Excellence from Ministry of Tourism, Egypt, October 2010

The Oberoi Group (Parent Company)

The Oberoi Group, instituted in 1934, is engaged in business of flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters. Currently, The Group Oberoi operates 27 hotels and three cruisers in five countries. It operates its hospitality business under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. In India the group has presence in Mumbai, Gurgaon, Chennai, Bhubaneshwar, Cochin, Agra, Jaipur and Udaipur. Overseas, the group also has presence in Saudi Arabia, Egypt, Indonesia and Mauritius.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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