EIH Ltd - Stock Valuation and Financial Performance

BSE: 500840 | NSE: EIHOTEL | Hotel, Resort & Restaurants | Small Cap

EIH Share Price

483.30 2.00 0.42%
as on 18-May'24 10:00

DeciZen - make an informed investing decision on EIH

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

EIH stock performance -

mw4me loader
P/E Ratio (SA):
59.17
Market Cap:
30,098.8 Cr.
52-wk low:
195
52-wk high:
566

Is EIH Ltd an attractive stock to invest in?

1. Is EIH Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that EIH Ltd is a below average quality company.

2. Is EIH Ltd undervalued or overvalued?

The key valuation ratios of EIH Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is EIH Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of EIH Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of EIH:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 3.9%4.1%3.7%3.6%4%4.2%4.8%-9.6%-4.2%11.6%-
Value Creation
Index
-0.7-0.7-0.7-0.7-0.7-0.7-0.7-1.7-1.3-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,2381,3351,4181,2761,3501,5431,3504338611,7742,108
Sales YoY Gr.-7.8%6.2%-10%5.8%14.3%-12.5%-68%99%106%-
Adj EPS 1.51.71.61.721.82.1-5.5-2.55.58.1
YoY Gr.-10.6%-4.8%5%16.8%-7.7%18.9%-356.1%NANA-
BVPS (₹) 41.641.842.443.948.34950.146.844.949.954.5
Adj Net
Profit
87.997.192.697.5114105125-342-156346508
Cash Flow from Ops. 222247208198215212252-123-31.7528-
Debt/CF from Ops. 1.30.91.21.522.31.7-2.3-10.50.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.1%5.6%9.5%106%
Adj EPS 15.5%23.2%37.2%NA
BVPS2%0.6%-0.2%11%
Share Price 20.4% 22.3% 70.8% 132.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
3.33.73.53.64.13.74.3-11.7-5.411.715.6
Op. Profit
Mgn %
19.420.119.115.216.520.715.9-63.2-2.131.935.9
Net Profit
Mgn %
7.17.36.57.68.46.89.2-79.1-18.119.524.1
Debt to
Equity
0.10.10.10.10.20.20.10.10.10-
Working Cap
Days
16715919225724322222751623412845
Cash Conv.
Cycle
2918121470466-10-1910

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.60%

Net Profit is growing at healthy rate in last 3 years 37.23%

Sales growth is good in last 4 quarters at 48.72%

Sales growth has been subdued in last 3 years 9.52%

Latest Financials - EIH Ltd.

Standalone Consolidated
TTM EPS (₹) 8.1 8
TTM Sales (₹ Cr.) 2,108 2,407
BVPS (₹.) 54.5 59.5
Reserves (₹ Cr.) 3,284 3,596
P/BV 8.83 8.09
PE 59.17 60.13
From the Market
52 Week Low / High (₹) 194.95 / 566.00
All Time Low / High (₹) 2.03 / 566.00
Market Cap (₹ Cr.) 30,099
Equity (₹ Cr.) 125.1
Face Value (₹) 2
Industry PE 62.1

Management X-Ray of EIH:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of EIH

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,2381,3351,4181,2761,3501,5431,3504338611,774
Operating Expenses 1,0001,0671,1481,0841,1311,2251,1387078811,210
Manufacturing Costs243259265247252280278180224328
Material Costs17819620619219421216970126178
Employee Cost 335363387379404422411315342383
Other Costs 243248290266281311280141189322
Operating Profit 238268270192219319213-275-20563
Operating Profit Margin (%) 19.3%20.0%19.0%15.0%16.2%20.6%15.8%-63.5%-2.3%31.8%
Other Income 41385099848797415062
Interest 41312315204650403429
Depreciation 99124114110109123134120115115
Exceptional Items 50-18-380-73-17-49-14-45
Profit Before Tax 145151165128174164109-443-133437
Tax 505556316250-15-100-15116
Profit After Tax 959710997112113124-343-118320
PAT Margin (%) 7.7%7.2%7.7%7.6%8.3%7.3%9.2%-79.3%-13.7%18.1%
Adjusted EPS (₹)1.61.71.91.71.91.92.1-5.5-1.95.1
Dividend Payout Ratio (%)66%65%58%53%46%45%0%0%0%21%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2,6482,6572,6882,7682,8162,8552,9192,9262,8083,118
Share Capital 114114114114114114114125125125
Reserves 2,5332,5432,5742,6542,7022,7412,8052,8012,6832,993
Minority Interest0000000000
Debt24016821226839443537023227236
Long Term Debt104642715225421018321516536
Short Term Debt136104185116140225187171070
Trade Payables89130119130161196170152141202
Others Liabilities 436412390376470426518349424498
Total Liabilities 3,4133,3673,4093,5413,8403,9113,9773,6593,6453,853

Fixed Assets

Gross Block2,8642,8481,7951,7862,3302,3472,7532,7582,7892,896
Accumulated Depreciation796901112218309409534645664769
Net Fixed Assets2,0681,9471,6831,5682,0211,9392,2192,1142,1252,127
CWIP 4686105313134641131524386
Investments 704729699764763829812776719718
Inventories40394241435052434156
Trade Receivables17018918616920422519172105210
Cash Equivalents 16241010899756179
Others Assets369354685676668796582494556478
Total Assets 3,4133,3673,4093,5413,8403,9113,9773,6593,6453,853

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 222247208198215212252-123-32528
PBT 145151165128174164109-443-133437
Adjustment 110130117128105195149182139120
Changes in Working Capital 53-11-24-20-81-4147-417
Tax Paid -38-38-63-34-44-65-2-93-36
Cash Flow From Investing Activity -28-74-90-211-267-144-87-4461-242
Capex -61-67-61-253-295-119-135-5851-121
Net Investments 7-32-6610-720-9-16-194
Others 27253841284749232772
Cash Flow From Financing Activity -199-173-1251450-68-16616619-307
Net Proceeds from Shares 000000035000
Net Proceeds from Borrowing -40-40-40110119-44-1833-35-170
Interest Paid -41-31-22-26-36-46-40-31-23-27
Dividend Paid -51-63-1260-51-51-52000
Others -66-3963-691874-56-18578-109
Net Cash Flow -41-71-21-1-149-21
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)3.943.984.453.844.1844.31-11.74-4.1210.8
ROCE (%)6.756.796.995.16.336.384.76-12.32-3.1214.75
Asset Turnover Ratio0.360.390.420.370.370.40.340.110.240.47
PAT to CFO Conversion(x)2.342.551.912.041.921.882.03N/AN/A1.65
Working Capital Days
Receivable Days514948515051561113832
Inventory Days11111012111114401810
Payable Days161204220236273307396841426351

EIH Ltd Stock News

EIH Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of EIH on 18-May-2024 10:00 is ₹483.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-May-2024 10:00 the market cap of EIH stood at ₹30,098.8.
The latest P/E ratio of EIH as of 18-May-2024 10:00 is 59.17.
The latest P/B ratio of EIH as of 18-May-2024 10:00 is 8.83.
The 52-week high of EIH is ₹566.0 and the 52-week low is ₹194.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of EIH is ₹2,108 ( Cr.) .

About EIH Ltd

EIH Limited, under the aegis of The Oberoi Group, operates hotels and cruisers in five countries under the luxury 'Oberoi' and five-star 'Trident' brands. The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters.

Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence and unparalleled levels of service, Oberoi hotels and resorts have received innumerable awards and accolades. The last decade has witnessed the debut of new luxury Oberoi leisure hotels in India and abroad.

Trident hotels are five-star hotels that have established a reputation for excellence and are acknowledged for offering quality and value. These hotels combine state of the art facilities with dependable service in a caring environment, presenting the ideal choice for business and leisure travellers.

The Group's commitment to excellence, attention to detail and personalised service has ensured a loyal list of guests and accolades in the worldwide hospitality industry.

Business area of the company

The company is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury ‘Oberoi’ and ‘Trident’ brands. The Company is also engaged in flight catering, airport restaurants, project management and corporate air charters.

Awards and recognitions

2016

  • Oberoi Hotels & Resorts was voted the World’s Best Hotel Brand for the second consecutive year in the Travel + Leisure, World’s Best Awards Readers’ Survey, 2016.
  • The Oberoi Group was voted the best Hotel Group (India) in the Travel + Leisure, India and South Asia, India’s Best Awards, 2016.
  • Mr. P.R.S. Oberoi, Executive Chairman, The Oberoi Group was conferred with the ET Bengal Visionary Award by The Economic Times Bengal Corporate Awards, 2016.

2017

  • Oberoi Hotels & Resorts has been voted as the World’s Leading Luxury Hotel Brand for the sixth consecutive year by World Travel Awards, 2017.
  • Oberoi Hotels and Resorts was voted as the World’s Leading Luxury Hotel brand for the sixth consecutive year by the World Travel Awards, 2017.

2018

  • Oberoi Hotels & Resorts has won Best Business Hotel Brand in India by Business Traveller UK Reader Awards, 2018.

2019

  • Oberoi Hotels & Resorts has been voted the Best Hotel Group for the third consecutive year by Telegraph Travel Awards, UK - 2019, 2018 and 2017.
  • Oberoi Hotels & Resorts was voted Best Indian Hotel Group in the Travel + Leisure, India & South Asia India’s Best Awards, 2019.
  • Oberoi Hotels & Resorts was voted the Best Luxury Hotel Brand by Business Traveller UK Awards, 2019
  • Oberoi Hotels & Resorts was ranked second amongst the Best Hotel Brand in the World by Travel + Leisure, US, World’s Best Awards, 2019.

History and Milestones

  • 1949: The Company was promoted and incorporated by Rai Bahadur Mohan Singh Oberoi and Oberoi Hotels (India) Limited in May, 1949.
  • 1956: The Equity shares of the Company were first listed on the BSE.
  • 1956: Took the Maharaja’s palace in Srinagar, Kashmir on lease and converted it into the Oberoi Palace Hotel.
  • 1957: Started the flight service business.
  • 1965: Commenced operations at The Oberoi Hotel, New Delhi.
  • 1968: By a scheme of merger approved by the Calcutta High Court, The Associated Hotels of India Limited and Hotels (1938) Private Limited merged into the Company. By virtue of the merger, the Company acquired The Oberoi Grand, Kolkata, Maidens Hotel, Delhi, The Oberoi Cecil, Shimla,
  • 1973: Commenced operations at The Oberoi Towers, Mumbai.
  • 1974: Established a printing press in Delhi primarily for the Company’s in-house needs.
  • 1979: Bonus issues of 1,337,745 new Equity shares of the Company of Rs. 10 each in the ratio of one new Equity share for every five equity shares held by the shareholders.
  • 1984: Bonus issues of 4,953,131 new Equity shares of the Company of Rs. 10 each in the ratio of two new Equity shares for every five equity shares held by the shareholders.
  • 1986: Made a foray into the airport service business by entering into a ten year contract with the International Airport’s Authority to operate all the snack bars and restaurants at the domestic and international terminals in Mumbai.
  • 1992: Bonus issues of 4,720,704 new Equity shares of the Company of Rs. 10 each in the ratio of one new Equity share for every five equity shares held by the shareholders.
  • 1993: Joint venture agreement between EIH and Kerala Government to promote Oberoi Kerala Hotels and Resorts Ltd. The JV is 80:20. 80% shareholding by EIH and 20% by Kerala Government thru Tourist Resort Kerala Ltd, a subsidiary of KTDC. As on date no business in the Company.
  • 1994: Listing of GDRs on the London Stock Exchange.
  • 1995: Joint venture with Himachal Pradesh Government for Promoting Mashobra Resort Ltd (Hotel Wild flower hall) Shimla. EIH’s holding in Mahobra Resort Ltd as on date is 78.79%.
  • 1996: Change of name of the Company from The East India Hotels Limited to EIH Limited.
  • 1996: Bonus issues of 17,464,299 new Equity shares of the Company of Rs. 10 each in the ratio of one new Equity share for every two equity shares held by the shareholders.
  • 1997: Commenced operations at The Oberoi Rajvilas in Jaipur, our first luxury leisure hotel in India.
  • 1997: Joint Venture with Goyals and Bhasins for promoting Mumtaz Hotels Ltd (The Oberoi Amarvilas, Agra) in which EIH holds 60% and Goyals and Bhasins together hold the balance 40%.
  • 2004: The Company entered into a strategic alliance for international marketing with Hilton International. All the Trident hotels were re-branded as “Trident Hilton”, and The Oberoi Towers in Mumbai was re-branded as Hilton Towers.
  • 2006: Sub-division of the face value of equity shares from Rs. 10 to Equity shares of Rs. 2.
  • 2006: Bonus issues of 130,984,657 new Equity shares of the Company of Rs. 2 each in the ratio of one new Equity share for every two equity shares held by the shareholders.
  • 2006: The Company acquired 66.67% equity stake in Mercury Car Rentals Limited, a joint venture with AVIS Europe for car rental business.
  • 2006: The printing press established by the Company in 1974 was granted permission by the Indian Banks’ Association to print security stationery for banks.
  • 2008: The alliance with Hilton International ended and “Trident Hilton and the Hilton Towers hotels were renamed “Trident” hotels.
  • 2008: Establishment of EIH Flight Services Limited, Mauritius as a wholly owned subsidiary of the Company.
  • 2008: Terrorist attack at the Trident, Nariman Point and The Oberoi, Mumbai in November, 2008 resulting in interruption in business and closure of both the hotels.
  • 2008: The Trident Mumbai reopened on 21st December, 2008 after the terrorist attack.
  • 2009: Trident hotel at Bandra Kurla Complex in Mumbai commenced its operation.
  • 2009: Entered into a joint venture agreement with 16% equity interest in Golden Jubilee Hotels Limited for the proposed Trident hotel in Hyderabad.
  • 2010: The Oberoi, Mumbai reopens after full renovation subsequent to terrorist attacks in 2008.
  • 2010: EIH International Limited, a wholly owned subsidiary of the Company completed an acquisition of approximately 46% of the equity interest in its international hotels joint venture company EIH Holdings Limited. Pursuant to this acquisition, EIH Holdings Limited is now a wholly owned subsidiary of EIH International Limited.
  • 2011: Rights Issue of 178,615,442 equity shares of face value Rs 2/- at a price of Rs.66 per share for an aggregate amount of Rs. 11788.62 million in the ratio  of 5 equity share for every 11 fully paid equity share (5:11) for repayment of debt, construction and commissioning of flight kitchen at New Delhi and General Corporate Purposes.
  • 2011: The Oberoi Gurgaon and Trident Gurgaon (Managed Properties) opened.
  • 2012: Renovation/construction of flight catering operation (flight kitchen) in New Delhi with state of the art equipment having capacity to cater 18,000 meals per day completed.
  • 2013: The Company reduced its equity stake to 40% in Mercury Car Rentals Limited (now Mercury Car Rentals Private Limited).
  • 2013: Trident Hyderabad opened.
  • 2015: New Flight catering facility operationalized in Kolkata with the state of the art equipment to maintain international hygiene standards having capacity to cater 3,500 meals per day.
  • 2016: The Oberoi Sukhvilas Resort & Spa, Near Chandigarh (a Managed Property) opened.
  • 2017: GDRs were delisted from the London Stock Exchange.
  • 2018: The Oberoi at New Delhi, an iconic Delhi property, reopened ahead of schedule in January (in 21 months period) post major renovation directed by designer Adam. D. Tihany.
  • 2018: The Company increased its stake in equity to 25.10 % in Mercury Travels Limited, engaged in business of various travel services including business travel management, meetings, conferences and incentives, foreign exchange services, outbound holidays, Indian holidays and travel insurance.
  • 2018: Investment by Company through its WOS - EIH International Ltd which holds 47.93% in La. Roseraie De Atlas (Marrakech Project) in Marrakech.
  • 2018: EIH sold its entire equity holding of 25.10% in Mercury Travels Ltd to Ebix, USA. Mercury Travels Ltd ceased to be an associate of EIH.
  • 2018: EIH took/ invested 25.10% shares in U Smart Education Ltd, a WOS of Mercury Travels Ltd, as part of sale of shares in Mercury Travels Ltd.
  • 2019: the Company initiated major process improvement initiatives through “The Oberoi Centre of Excellence” (TOCE). The centre commenced operations on 01st October 2019 with the broad objective of introducing contemporary IT-enabled processes, modifying various processes across the organization to enhance efficiency, eliminating manpower redundancy, promoting scalability and achieving economies of scale.
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