EIH Associated Hotels Limited

Consumer Cyclical — Lodging · NSE

₹293.75+₹6.15 (+2.14%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of EIH Associated Hotels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

EIH Associated Hotels Limited operates as a luxury hospitality company in India. The company offers hotel services, including accommodation, food and beverages, laundry, spa, guest transfer, membership, loyalty program, and other allied services.

IndustryLodging

SectorConsumer Cyclical

Employees443

Annual revenue₹384 Cr

How does it make money?

Turns over ₹384 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 443 employees supports ₹86.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin33.1%

Net margin22.7%

Revenue / employee₹86.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.1%

ROE14.5%

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +14% while net margin moved +19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+14%

Margin effect+19%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.4% — barely ahead of inflation
• Profit CAGR of 10.5%
✗ Latest-year revenue growth of -4.0% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.4x

3Y Median

25.1x

40 monthly readings · mean 26.5x · range 17.9x–44.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 25.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 71% below the peer median of 69.2x.

vs. its own history

Fair

25.1x median over 40 months · -19%

vs. sector peers

Cheap

69.2x median of 4 peers · -71%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.4x

P/B

2.97x

EV/EBITDA

14.1x

PEG

1.94

Dividend Yield

1.19%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 28.7% to 33.1% over 3 years.
Debt is being paid down
Total debt is down 15% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 28.7% to 33.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 31%✓ 33.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.4% CAGR
Latest reported year was -4.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹40 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹1,790 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.42

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

-4.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

11.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.19%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹40 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹293.75

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

23.1%

Good

Strong bottom-line conversion

Current Ratio

3.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.04

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

294.2 / 295.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹337 Cr	₹385 Cr	₹408 Cr	₹384 Cr	+4.4%
EBITDA	₹97 Cr	₹116 Cr	₹135 Cr	₹127 Cr	+9.5%
EBITDA Margin	28.7%	30.3%	33.1%	33.1%	—
PAT (Net Profit)	₹65 Cr	₹81 Cr	₹92 Cr	₹87 Cr	+10.5%
EPS	₹10.61	₹13.3	₹15.07	₹14.31	+10.5%
ROE	16.3%	17.5%	17.1%	14.5%	—
ROCE	19.5%	21.7%	21.3%	18.1%	—
Total Debt	₹5 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-5.1%
Free Cash Flow	₹72 Cr	₹40 Cr	₹81 Cr	₹40 Cr	-17.7%

🟢 Revenue has grown at 4.4% a year over 3 years.

🟢 EBITDA has grown at 9.5% a year over 3 years.

🟢 EBITDA Margin has risen from 28.7% to 33.1% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 10.5% a year over 3 years.

🟢 EPS has grown at 10.5% a year over 3 years.

🔴 ROE has fallen from 16.3% to 14.5% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 19.5% to 18.1% over 3 years (-1.4 pts).

🟢 Total Debt has shrunk at 5.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 17.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹724 Cr

Total Liabilities

₹122 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹100 Cr

Capex

-₹61 Cr

Shareholding (proxy)

Institutional Holding

13.5%

Insider Holding

76.5%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

28 Jul 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive1 mixed3 general

EIH Associated Hotels shareholders approve ₹3.50 dividend at 43rd AGM

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Is Now The Time To Put EIH Associated Hotels (NSE:EIHAHOTELS) On Your Watchlist?

Simply Wall Street, 01 Apr

EIH Associated Hotels Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

EIH Associated Hotels Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

EIH Associated Hotels Ltd

Equitypandit, 06 Feb

EIH Assoc Hotel declares Rs 3.50 final dividend; ex-date tomorrow

Moneycontrol.com, 27 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-4.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟢Financial HealthStrong16.6/20

🟡GrowthModest9.5/20

🟢ProfitabilityStrong10.9/15

🟡ValuationFair9.3/15

🟡RiskModerate6.2/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓EBITDA margin holds above 31%33.1%
✓Revenue growth stays above 4% a year4.4% CAGR
✓Free cash flow remains positive₹40 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 15%18.1%