1
Please refer to important disclosures at the end of this report
1
1
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. The luxury
hotel chains run by EIH has seen an improvement in its performance in the last
few months after falling sharply through November and December on fears of
the adverse impact of the note ban. EIH, one of the premium hotel operators, is
expected to be a key beneficiary of a revival in the economic environment. EIH’s
hotels have a major presence in business destinations, which are expected to
witness robust growth, going ahead, led by a revival in the economic
environment. Also, with improved tourism measures by the government, the
sector may see a better growth trajectory and pricing in the next three to four
years. Apart from an improving environment, the reopening of the Delhi property
and opening of six new hotels is expected to drive topline and bottomline growth
in years to come. With the improved travel and tourism has led to a jump in
occupancy rates. The company has maintained a consistent above `200cr cash
flow from operation in last 3 years. The company is virtually debt free and has
been maintaining a healthy dividend payout of 64.34%. Hence Buy.
BUY
CMP `142
0.6
Reuters Code
EIHO.BO
EIH@IN
2
BSE Sensex
30,435
Nifty
9,429
Face Value (`)
Hotels
Market Cap (` cr)
8,122
52 Week High / Low
145/86
Avg. Daily Volume
29,192
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
EIH
Others | Hotels
May 18, 2017
2
EIH | Capital Goods
May 18, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement EIH
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)