NSEI:EIHOTEL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.


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


Market Performance


7 Day Return

0.03%

EIHOTEL

-0.05%

IN Hospitality

1.4%

IN Market


1 Year Return

10.9%

EIHOTEL

-7.4%

IN Hospitality

2.3%

IN Market

Return vs Industry: EIHOTEL exceeded the Indian Hospitality industry which returned -7.4% over the past year.

Return vs Market: EIHOTEL exceeded the Indian Market which returned 2.3% over the past year.


Shareholder returns

EIHOTELIndustryMarket
7 Day0.03%-0.05%1.4%
30 Day8.9%2.4%2.7%
90 Day2.1%-5.7%-1.4%
1 Year11.6%10.9%-7.1%-7.4%4.3%2.3%
3 Year60.2%57.4%16.7%13.6%20.9%14.9%
5 Year82.2%75.4%46.2%41.3%41.2%28.2%

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

Valuation

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

83.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EIHOTEL (₹172) is trading above our estimate of fair value (₹7.53)

Significantly Undervalued: EIHOTEL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EIHOTEL is poor value based on its PE Ratio (83.8x) compared to the Hospitality industry average (19.5x).

PE vs Market: EIHOTEL is poor value based on its PE Ratio (83.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EIHOTEL is overvalued based on its PB Ratio (3.2x) compared to the IN Hospitality industry average (1.1x).


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIHOTEL's forecast earnings growth (13% per year) is above the savings rate (7.6%).

Earnings vs Market: EIHOTEL's earnings (13% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: EIHOTEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if EIHOTEL's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if EIHOTEL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if EIHOTEL'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?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EIHOTEL's earnings have grown by 10.1% per year over the past 5 years.

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

Earnings vs Industry: EIHOTEL had negative earnings growth (-31%) over the past year, making it difficult to compare to the Hospitality industry average (20.7%).


Return on Equity

High ROE: EIHOTEL's Return on Equity (4.3%) is considered low.


Return on Assets

ROA vs Industry: EIHOTEL's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: EIHOTEL has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is EIH's financial position?


Financial Position Analysis

Short Term Liabilities: EIHOTEL's short term assets (₹6.7B) exceeds its short term liabilities (₹6.5B)

Long Term Liabilities: EIHOTEL's short term assets (6.7B) exceeds its long term liabilities (5.2B)


Debt to Equity History and Analysis

Debt Level: EIHOTEL's debt to equity ratio (17.5%) is considered satisfactory

Reducing Debt: EIHOTEL's debt to equity ratio has increased from 16.3% to 17.5% over the past 5 years.

Debt Coverage: EIHOTEL's debt is well covered by operating cash flow (53.9%).

Interest Coverage: EIHOTEL's interest payments on its debt are well covered by EBIT (49.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: EIHOTEL's debt is covered by short term assets (assets are 1.235680x debt).


Next Steps

Dividend

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

0.53%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EIHOTEL's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: EIHOTEL's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.5%), EIHOTEL'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

What is the CEO of EIH's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Vikram Oberoi (56yo)

4.5yrs

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: Insufficient data to establish whether Vikram's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

4.5yrs

Average Tenure

56yo

Average Age

Experienced Management: EIHOTEL's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: EIHOTEL's board of directors are considered experienced (8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Prithvi Raj Oberoi (90yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹33.02m
  • Vikram Oberoi (56yo)

    MD, CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₹35.84m
  • Arjun Oberoi (50yo)

    MD of Development & Executive Director

    • Tenure: 15.3yrs
    • Compensation: ₹33.31m
  • Shib Mukherji (71yo)

    Executive Vice Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹36.89m
  • S. Sridhar

    Senior VP

    • Tenure: 8.2yrs
    • Compensation: ₹6.59m
  • Sanjay Rai (61yo)

    Executive Vice President of Sales

    • Tenure: 0yrs
    • Compensation: ₹9.81m
  • Arun Bahadur (60yo)

    Executive Vice President of Engineering

    • Tenure: 0yrs
    • Compensation: ₹10.05m
  • Kallol Kundu (47yo)

    Chief Financial Officer

    • Tenure: 1yrs
    • Compensation: ₹21.88m
  • Kanwaljeet Bakshi (54yo)

    Executive Vice President of Human Resources

    • Tenure: 0yrs
  • Manish Singh (47yo)

    Senior Vice President of Marketing

    • Tenure: 0yrs

Board Members

  • Manoj Modi (62yo)

    Director

    • Tenure: 8yrs
    • Compensation: ₹250.00k
  • Sudipto Sarkar (73yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹400.00k
  • Prithvi Raj Oberoi (90yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹33.02m
  • Vikram Oberoi (56yo)

    MD, CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₹35.84m
  • Anil Nehru (78yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: ₹900.00k
  • Arjun Oberoi (50yo)

    MD of Development & Executive Director

    • Tenure: 15.3yrs
    • Compensation: ₹33.31m
  • Shib Mukherji (71yo)

    Executive Vice Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹36.89m
  • Lakshminarayan Ganesh (65yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: ₹750.00k
  • Nita Ambani (57yo)

    Director

    • Tenure: 8yrs
    • Compensation: ₹300.00k
  • Rajeev Gupta (61yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: ₹900.00k

Company Information

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


Key Information

  • Name: EIH Limited
  • Ticker: EIHOTEL
  • Exchange: NSEI
  • Founded: 1949
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹96.710b
  • 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 Del ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.