BSE:500840

Stock Analysis Report

Executive Summary

EIH Limited engages in the ownership, management, and operation of hotels and cruisers in India and internationally.


Snowflake Analysis

Mediocre balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has EIH's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500840 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

500840

2.7%

IN Hospitality

-0.07%

IN Market


1 Year Return

-24.3%

500840

-7.3%

IN Hospitality

9.5%

IN Market

Return vs Industry: 500840 underperformed the Indian Hospitality industry which returned -7.3% over the past year.

Return vs Market: 500840 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

500840IndustryMarket
7 Day1.1%2.7%-0.07%
30 Day-5.0%-0.7%-1.3%
90 Day-10.4%-3.0%1.9%
1 Year-23.9%-24.3%-1.7%-7.3%11.5%9.5%
3 Year38.3%35.9%35.7%22.1%23.6%16.7%
5 Year31.8%26.9%52.9%34.8%35.5%22.9%

Price Volatility Vs. Market

How volatile is EIH's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is EIH undervalued compared to its fair value and its price relative to the market?

59.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500840 (₹144.35) is trading above our estimate of fair value (₹22.92)

Significantly Below Fair Value: 500840 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500840 is poor value based on its PE Ratio (61.4x) compared to the Hospitality industry average (18.9x).

PE vs Market: 500840 is poor value based on its PE Ratio (61.4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500840's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500840 is overvalued based on its PB Ratio (2.8x) compared to the IN Hospitality industry average (0.9x).


Next Steps

Future Growth

How is EIH forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 500840's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 500840's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500840's revenue (11.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500840's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 500840's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EIH performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500840 has a large one-off loss of ₹855.7M impacting its December 31 2019 financial results.

Growing Profit Margin: 500840's current net profit margins (7.9%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: 500840's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: 500840's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500840 had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Hospitality industry average (27.3%).


Return on Equity

High ROE: 500840's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EIH's financial position?


Financial Position Analysis

Short Term Liabilities: 500840's short term assets (₹5.6B) do not cover its short term liabilities (₹6.7B).

Long Term Liabilities: 500840's short term assets (₹5.6B) do not cover its long term liabilities (₹6.1B).


Debt to Equity History and Analysis

Debt Level: 500840's debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: 500840's debt to equity ratio has increased from 15.6% to 22.2% over the past 5 years.

Debt Coverage: 500840's debt is well covered by operating cash flow (47.6%).

Interest Coverage: 500840's interest payments on its debt are well covered by EBIT (30.1x coverage).


Balance Sheet

Inventory Level: 500840 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500840's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is EIH's current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: 500840's dividend (0.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500840's dividend (0.62%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: 500840's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500840's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), 500840's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Vikram Oberoi (56yo)

4.8yrs

Tenure

₹35,840,000

Compensation

Mr. Vikramjit Singh Oberoi, also known as Vikram, serves as Managing Director at EIH Associated Hotels Ltd. Mr. Oberoi has been the Chief Executive Officer of EIH Ltd., April 1, 2015 and serves as its Mana ...


CEO Compensation Analysis

Compensation vs Market: Vikram's total compensation ($USD498.94K) is about average for companies of similar size in the Indian market ($USD407.20K).

Compensation vs Earnings: Vikram's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Prithvi Raj Oberoi
Executive Chairman0yrs₹33.02m0.054% 44.4m
Vikramjit Oberoi
MD, CEO & Executive Director4.8yrs₹35.84m0.90% 740.1m
Kallol Kundu
Chief Financial Officer1.3yrs₹21.88mno data
Arjun Oberoi
MD of Development & Executive Director15.6yrs₹33.31m1.13% 931.1m
Shib Mukherji
Executive Vice Chairman4.8yrs₹36.89m1.59% 1.3b
S. Sridhar
Senior VP8.5yrs₹6.59mno data
Sanjay Rai
Executive Vice President of Sales0yrs₹9.81mno data
Manish Singh
Senior Vice President of Marketing0yrsno datano data
Kanwaljeet Bakshi
Executive Vice President of Human Resources0yrsno datano data
Arun Bahadur
Executive Vice President of Engineering0yrs₹10.05mno data

4.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 500840's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Prithvi Raj Oberoi
Executive Chairman0yrs₹33.02m0.054% 44.4m
Vikramjit Oberoi
MD, CEO & Executive Director4.8yrs₹35.84m0.90% 740.1m
Arjun Oberoi
MD of Development & Executive Director15.6yrs₹33.31m1.13% 931.1m
Shib Mukherji
Executive Vice Chairman4.8yrs₹36.89m1.59% 1.3b
Manoj Modi
Director8.3yrs₹250.00kno data
Sudipto Sarkar
Independent Director5.3yrs₹400.00kno data
Anil Nehru
Independent Director17.3yrs₹900.00kno data
Lakshminarayan Ganesh
Independent Director12.1yrs₹750.00kno data
Nita Ambani
Director8.3yrs₹300.00kno data
Rajeev Gupta
Independent Director7.3yrs₹900.00kno data

8.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 500840's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EIH Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EIH Limited
  • Ticker: 500840
  • Exchange: BSE
  • Founded: 1949
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹82.506b
  • Shares outstanding: 571.57m
  • Website: https://www.eihltd.com

Number of Employees


Location

  • EIH Limited
  • 7, Sham Nath Marg
  • Delhi
  • Delhi
  • 110054
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500840BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
EIHOTELNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

EIH Limited engages in the ownership, management, and operation of hotels and cruisers in India and internationally. It owns a 100% equity interest in the six ‘The Oberoi Hotels’ located in Mumbai, New Delhi, Kolkata, Bengaluru, Udaipur, and Ranthambhore, as well as in Agra, Jaipur, and Shimla. The company also has a 100% equity interest in and manages the Trident, Nariman Point and Trident, and Bandra-Kurla Complex in Mumbai; and 36% equity interest in the Trident Hotels located in Agra, Bhubaneswar, Chennai, Cochin, Jaipur, and Udaipur, as well as manages the Trident in Gurugram. Further, 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; operates a commercial printing press; and provides air charter, car rental, and project management services, as well as operates the Maidens Hotel in Delhi. EIH Limited was incorporated in 1949 and is based in Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:58
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.