EIH Limited

Consumer Cyclical — Lodging · NSE

₹302.45+₹8.00 (+2.72%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt 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 Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

EIH Limited, together with its subsidiaries, owns and manages hotels and cruisers under the Oberoi, Trident, and Maidens brand names in India and internationally.

IndustryLodging

SectorConsumer Cyclical

Employees3,321

Annual revenue₹2,940 Cr

How does it make money?

Turns over ₹2,940 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 3,321 employees supports ₹88.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin41.9%

Net margin21.4%

Revenue / employee₹88.5 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 16.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.2%

ROE11.9%

Peer median ROE25.9%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 8.9% and earnings to grow about 10.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.9%

Est. earnings growth+10.0%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +46% while net margin moved +37% 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+46%

Margin effect+37%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.23 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

70/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

26.6x

3Y Median

36.2x

40 monthly readings · mean 43.0x · range 23.1x–95.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 36.2x. 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 62% below the peer median of 69.2x.

vs. its own history

Cheap

36.2x median over 40 months · -27%

vs. sector peers

Cheap

69.2x median of 4 peers · -62%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.6x

P/B

3.59x

EV/EBITDA

15.4x

PEG

1.02

Dividend Yield

0.50%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 34.8% to 41.9% over 3 years.
Return on capital is rising
ROCE has improved from 12.5% to 16.2%.
Valuation below its historical average
At 26.6x the stock trades 27% below its own median of 36.2x.
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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 4.67x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 34.8% to 41.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 62% 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?

Leverage amplifies any setback
Debt/Equity of 4.67x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Small 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

1Revenue growth stays above 10% a year✓ 13.3% CAGR
Latest reported year was 14.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 41.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹297 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹18,914 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.38

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

16.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.67x

High

High leverage

Revenue Growth (YoY)

14.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

246.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.50%

Modest

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

Free Cash Flow

₹297 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹302.45

P/E (Forward)

20.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

19.7%

Good

Healthy core-business profitability

Net Margin

23.1%

Good

Strong bottom-line conversion

Current Ratio

2.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.23

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

298.3 / 297.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,019 Cr	₹2,511 Cr	₹2,743 Cr	₹2,940 Cr	+13.3%
EBITDA	₹703 Cr	₹1,070 Cr	₹1,298 Cr	₹1,232 Cr	+20.5%
EBITDA Margin	34.8%	42.6%	47.3%	41.9%	—
PAT (Net Profit)	₹315 Cr	₹639 Cr	₹739 Cr	₹628 Cr	+25.9%
EPS	₹5.03	₹10.22	₹11.82	₹10.05	+26.0%
ROE	9.3%	16.2%	16.0%	11.9%	—
ROCE	12.5%	20.8%	19.8%	16.2%	—
Total Debt	₹238 Cr	₹199 Cr	₹265 Cr	₹252 Cr	+1.9%
Free Cash Flow	₹476 Cr	₹489 Cr	₹340 Cr	₹297 Cr	-14.6%

🟢 Revenue has grown at 13.3% a year over 3 years.

🟢 EBITDA has grown at 20.5% a year over 3 years.

🟢 EBITDA Margin has risen from 34.8% to 41.9% over 3 years (+7.1 pts).

🟢 PAT (Net Profit) has grown at 25.9% a year over 3 years.

🟢 EPS has grown at 26.0% a year over 3 years.

🟢 ROE has risen from 9.3% to 11.9% over 3 years (+2.6 pts).

🟢 ROCE has risen from 12.5% to 16.2% over 3 years (+3.7 pts).

🟡 Total Debt has been broadly flat over 3 years (1.9% a year).

🔴 Free Cash Flow has shrunk at 14.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,556 Cr

Total Liabilities

₹1,146 Cr

Total Debt

₹252 Cr

Cash & Equivalents

₹173 Cr

Operating Cash Flow

₹993 Cr

Capex

-₹696 Cr

Shareholding (proxy)

Institutional Holding

14.3%

Insider Holding

70.5%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹367.5

+21.5% vs CMP

Target Range

₹350 – ₹385

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 Limited Share Price - Live NSE: EIHOTEL Stock Price & Chart

Upstox, 16 Oct

Be Sure To Check Out EIH Limited (NSE:EIHOTEL) Before It Goes Ex-Dividend

Simply Wall Street, 27 JulCapital return

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

EIH Q1FY27 results: Net profit jumps 226% YoY, revenue rises 14.50%

Livemint, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Why Is EIH Share Price Falling Key Reasons 2026

Univest, 22 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why Buy This Luxury Hotel on Dips

BusinessLine, 13 Jun

Why EIH Share Price is Rising

Equitymaster, 06 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.1/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong10.9/15

🟡ValuationFair9.5/15

🟡RiskModerate4.8/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year13.3% CAGR
✓EBITDA margin holds above 40%41.9%
✓Free cash flow remains positive₹297 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 13%16.2%