EIH Limited, headquartered in Mumbai, India, is a prominent name in the hospitality sector. As the flagship company of the Oberoi Group, EIH manages a portfolio of 33 hotels, both in India and overseas. This article delves into the company’s operations, expansion plans, and its potential in the stock market.
About EIH Limited
EIH Limited, often recognized by its stock symbol EIHOTEL, has been a key player in the hospitality industry since its inception in 1934. Under the leadership of CEO Vikram Oberoi, the company operates a variety of hotel brands, including:
Oberoi: Known for super luxury accommodations.
Trident: A five-star brand catering to the discerning traveler.
Maidens: Preserving heritage in the world of hospitality.
In addition to its hotels, EIH extends its services to catering and kitchen services for airlines, operates restaurants and lounges at airports, and offers air charter and car hire services.
Geographic Presence
EIH’s stronghold lies in the bustling cities of Mumbai and Delhi, contributing significantly to its revenue stream. Moreover, the company is in the pipeline for 11 upcoming hotel projects, and details will be announced once finalized.
EIH’s Expansion Plans
EIH has ambitious expansion goals, aiming to add 20 properties through owned and managed contracts over the next five years. This strategic move is expected to result in an additional 750+ rooms by FY27.
Fundamentals of EIH Limited
To gain a deeper understanding of EIH’s valuation, let’s take a look at some key financial metrics:
Market Cap ₹145.37B
Enterprise Value ₹144,856,629,248.00
Shares Outstanding 625.36M
P/E Ratio 39.46
Forward P/E Ratio 25.82
Price / Book 4.31
Book Value ₹53.96
Debt / Equity 6.87
Price / Sales 6.67
Earnings per Share ₹5.89
Revenue per Share ₹34.88
Total Cash per Share ₹6.38
Dividend Rate ₹1.10
Dividend Yield 0.47%
Total Cash ₹3.99B
Total Debt ₹2.38B
Total Revenue ₹21.78B
Gross Margin 65.72%
% Held by Insiders 71.24%
% Held by Institutions 14.83%
EIH’s Share Price Outlook : The future appears promising for EIH Limited in terms of its share price. EIH’s focus on expansion and adaptability to market conditions continues to drive growth and profitability.
EIH Share Price Targets 2023
Minimum Target: ₹300
Maximum Target: ₹320
Rationale: EIH’s share price is expected to rise in 2023 due to strong performance in FY23, driven by a 10% revenue compound annual growth rate (CAGR) and sustained profit margins of approximately 30-31%. The rebound in foreign tourist arrivals is also anticipated to boost leisure and business hotel room demand.
EIH Share Price Targets 2024
Minimum Target: ₹350
Maximum Target: ₹370
Rationale: EIH’s share price is expected to continue its upward trajectory in 2024. This is based on a promising outlook for FY24, including mega international events like the G20 and CWC. A 10% revenue CAGR from FY23 to FY25E is anticipated to drive the company’s profitability growth.
EIH Share Price Targets 2025
Minimum Target: ₹400
Maximum Target: ₹420
Rationale: EIH’s share price is projected to reach a minimum target of ₹400 and a maximum target of ₹420 by 2025. This is attributed to the company’s substantial presence in the demand-rich cities of Mumbai and Delhi. Moreover, improvements in the company’s margin profile are expected to further drive profitability.
EIH Share Price Targets 2027
Minimum Target: ₹500
Maximum Target: ₹520
Rationale: EIH’s share price is anticipated to reach a minimum of ₹500 and a maximum of ₹520 by 2027. This projection is based on the company’s plan to add 20 properties through owned and managed contracts, potentially adding 750+ rooms by FY27.
EIH Share Price Targets 2030
Minimum Target: ₹600
Maximum Target: ₹620
Rationale: EIH’s share price is expected to reach a minimum target of ₹600 and a maximum target of ₹620 by 2030. This outlook is based on the company’s sustained growth, expansion plans, and the expected recovery of the hospitality industry. EIH’s presence in key gateway cities, along with strong brand recognition, is poised to drive demand and revenue growth.
EIH Share Price Targets 2035
Minimum Target: ₹700
Maximum Target: ₹720
Rationale: EIH’s share price is projected to achieve a minimum target of ₹700 and a maximum target of ₹720 by 2035. This is grounded in the company’s long-term growth potential and the anticipated recovery of the hospitality industry. EIH’s strategy of adding new properties and expanding its footprint, coupled with its adaptability to changing market conditions, is expected to drive growth and profitability.
EIH Share Price Targets 2050
Minimum Target: ₹1000
Maximum Target: ₹1020
Rationale: Looking ahead to 2050, EIH’s share price is expected to attain a minimum target of ₹1000 and a maximum target of ₹1020. This is based on the company’s long-term growth potential, continued expansion, and adaptability in response to changing market conditions, as well as the broader recovery of the hospitality industry.
Disclaimer
It is important to emphasize that this article does not provide financial advice or stock recommendations. Share price predictions are inherently speculative and are for educational purposes only. Always conduct thorough research and seek advice from financial experts before making investment decisions.