EIH Limited (EIHOTEL) AI Stock Analysis

• Market Cap: ₹196.77B
• Dividend Yield: 0.41%
• Average Volume (3M): 68.69K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.93
• Revenue Growth: 7.74%
• EPS Growth: 0.11%
• Country: IN
• Employees: 5,035
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 3.89
• Shares Outstanding: 625,364,200
• 10 Day Avg. Volume: 12,045
• 30 Day Avg. Volume: 68,687
• PEG Ratio: 1.98
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 7.96
• P/FCF Ratio: 67.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 13.1
• Revenue Forecast (FY): ₹29.83B

• Rating: 72 Outperform
• Price Target: ₹351.00 ▼(-1.07% Downside)
• Action: Upgraded Date: 10/16/25
• Date: Action: Upgraded 10/16/25

EIH Limited's strong financial performance is the most significant factor, showcasing robust revenue growth and financial stability. However, the technical analysis presents mixed signals, and the valuation indicates the stock may be overvalued, which tempers the overall score.

Positive Factors

Strong Balance Sheet

EIH's balance sheet shows a dominant equity base and low leverage, providing financial flexibility to fund renovations, expansions or weather demand cycles. High equity ratio and improved cash holdings reduce refinancing risk and support sustained capital allocation without stressing margins.

High Margins & Profit Recovery

EIH has restored profitability with robust gross and net margins, reflecting pricing power in luxury hospitality and improved cost control. Moving from loss to substantial net income signals durable operational improvements and a stronger earnings base for reinvestment and resilience.

Strong Operating Cash Generation

Consistent, strong operating cash flows validate that reported profits convert to real cash, enabling capex, debt servicing and strategic spend. Positive free cash flow—even if slightly down—supports sustainable operations and funding of brand and property investments over the medium term.

Negative Factors

Negative EPS Growth

Despite strong revenues and margins, negative EPS growth implies episodic dilution or non-operating impacts that have weighed on per-share earnings. If persistent, this can constrain shareholder returns and indicate volatility in profitability drivers or capital structure decisions.

Slight Decline in Free Cash Flow

A decline in free cash flow, even from a positive level, can limit the firm's ability to expand, upgrade assets or increase shareholder distributions without tapping external capital. Over several quarters this could pressure reinvestment plans or increase reliance on financing.

Cyclicality & Demand Sensitivity

EIH's revenues hinge on occupancy, ADR and mix between corporate and leisure travel, exposing it to economic cycles and seasonality. Prolonged macro weakness or corporate travel slowdowns could materially compress occupancy and rates, impacting revenue durability and margin sustainability.

EIH Limited Business Overview & Revenue Model

Company Description

EIH Limited engages in the ownership, development, management, and operation of hotels and cruisers in India and internationally. It owns and manages 19 hotels and 1 cruises under the Oberoi Hotels & Resorts brand; and 10 five-star properties under the Trident Hotels brand in Mumbai, Jaipur, and Gurgaon. The company also owns and/or operates a luxury motor vessel in Kerala; and one luxury river Nile cruiser in Egypt. In addition, 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.

How the Company Makes Money

EIH Limited makes money mainly by operating and managing hotels and resorts, generating revenue from multiple in-property streams. The largest driver is typically room revenue (sale of hotel accommodation, including transient bookings and contracted/corporate stays), supported by food and beverage revenue from restaurants, bars, room service, and catering. The company also earns from banqueting and events (weddings, conferences, meetings, and social functions), where income is derived from venue hire and bundled catering/services. Additional earnings can come from other hotel services and ancillary income such as spa and wellness services, laundry, business center services, and other guest amenities, depending on the property. Where EIH operates or manages hotels for third parties, it may earn management fees and/or other contract-based income tied to operating the property. Key factors that influence earnings include occupancy levels, average room rates, the mix of leisure vs. corporate demand, seasonality, and the performance of food-and-beverage and banqueting segments within each hotel.

EIH Limited Financial Statement Overview

Summary

EIH Limited demonstrates robust financial health with strong revenue growth, improving profitability, and a solid balance sheet. The company's strategic focus on operational efficiency is evident in its healthy margins and low leverage, while consistent cash flow generation supports ongoing investments and financial flexibility.

Income Statement

EIH Limited has shown strong revenue growth over the years, with the most recent annual revenue reaching ₹28,795.1 million, up from ₹9,852.58 million in 2022. Gross profit margin is robust at 72.5% for 2025, and net profit margin is healthy at 25.7%. The company's ability to improve its net income from a loss in 2022 to a profit of ₹7,394.5 million in 2025 highlights its operational efficiency and market strength.

Balance Sheet

The balance sheet shows a strong equity position with a substantial increase in stockholders' equity to ₹46,128.4 million by 2025. The debt-to-equity ratio is low, indicating prudent financial leverage. The equity ratio is high at 79.0%, showcasing financial stability. Improvements in cash and short-term investments signal liquidity strength.

Cash Flow

EIH Limited's cash flow statements indicate strong operational cash flows, with operating cash flow increasing to ₹8,250.8 million. Free cash flow generation is positive, although it has decreased slightly from the previous year. The operating cash flow to net income ratio is solid, reflecting efficient cash conversion from profit.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.38B	28.80B	25.11B	20.19B	9.85B	4.94B
Gross Profit	19.41B	13.53B	17.93B	13.95B	4.90B	-2.41B
EBITDA	10.94B	11.53B	10.32B	6.03B	765.20M	-2.94B
Net Income	6.65B	7.39B	6.39B	3.15B	-974.55M	-3.70B
Balance Sheet
Total Assets	58.97B	58.40B	50.48B	44.07B	41.40B	41.32B
Cash, Cash Equivalents and Short-Term Investments	11.12B	10.51B	7.43B	3.99B	2.03B	1.64B
Total Debt	2.50B	2.65B	1.99B	2.38B	4.75B	5.10B
Total Liabilities	10.65B	10.96B	9.62B	9.35B	10.16B	9.33B
Stockholders Equity	47.06B	46.13B	39.40B	33.75B	30.27B	31.04B
Cash Flow
Free Cash Flow	1.01B	3.42B	4.89B	4.76B	-856.34M	-2.12B
Operating Cash Flow	2.61B	8.25B	7.12B	6.14B	-186.92M	-1.39B
Investing Cash Flow	-3.25B	-3.72B	-5.41B	-2.98B	235.07M	-526.79M
Financing Cash Flow	-1.38B	-1.13B	-1.67B	-2.99B	203.15M	1.70B

EIH Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 354.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EIHOTEL, the sentiment is Negative. The current price of 354.8 is above the 20-day moving average (MA) of 322.04, above the 50-day MA of 331.97, and below the 200-day MA of 367.43, indicating a bearish trend. The MACD of -4.18 indicates Negative momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:EIHOTEL.

EIH Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHANKARA	76 Outperform	₹2.53B	51.20	―	0.68%	-3.36%	-6.25%
EIHAHOTELS	75 Outperform	₹18.36B	13.46	―	0.98%	1.40%	18.39%
EIHOTEL	72 Outperform	₹196.77B	23.67	―	0.41%	7.74%	0.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEMONTREE	56 Neutral	₹81.52B	50.31	―	―	16.03%	44.95%
QUESS	55 Neutral	₹26.11B	13.93	―	4.70%	-16.43%	-75.38%
PVSL	47 Neutral	₹6.12B	313.53	―	0.42%	-0.11%	-159.33%

EIH Limited Corporate Events

EIH Limited Faces ₹29.98 Crore VAT Penalty on Mumbai Hotel Operations

EIH Limited has disclosed that the Additional Commissioner of State Tax in Mumbai has imposed a penalty of ₹29.98 crore under the Maharashtra VAT Act, 2002 on its Mumbai-based hotels and divisions, largely linked to what the authorities describe as arbitrary enhancement of food and beverage income and other output services for the 2016–17 financial year. The company, which had previously secured a settlement for the same period under the 2023 Maharashtra tax amnesty scheme, is now reassessing the legal validity of this review order and plans to initiate appropriate legal proceedings within statutory timelines, introducing potential tax-related uncertainty for its Mumbai operations and signaling a possible dispute over retrospective tax treatment in the state’s hospitality sector.