This Oberoi group company is into hospitality. They manage a luxury hotel portfolio and resorts across India and internationally. They are competing with Tata and other big hotels while delivering world-class hospitality services to both business and leisure travelers. The company plans to expand further into this space and by 2029 they plan to expand 1,350 keys across 20 properties 2029. Let’s look into this article for further details.
Price Movement
The EIH Limited’s stock in Friday’s session it was trading at Rs. 365.80 per share up by 2.9 percent from the previous closing price of Rs. 355.50. The stock has delivered a return of around 54 percent in the past year and has outperformed the Nifty Index in the same period.
Future Outlook
The company plans for an expansion of 20 properties with 1,350 keys by 2029. It consists of 11 domestic hotels and 9 international hotels including 9 owned and 11 managed. This includes around 1,062 keys in domestic locations and approximately 288 keys internationally.
In India, the domestic projects include a mix of owned and managed hotels which are The Oberoi Rajgarh Palace and The Oberoi Bandavgarh include 96 keys for 2025. The Oberoi Goa, Bogmallo includes 123 keys in 2026. Trident Vishakapatnam and Trident Tirupati comprise 334 keys for 2027, and The Oberoi Goa and The Oberoi Jawai include 216 keys for 2028. The Oberoi Gandikota, The Oberoi Hebbal, Trident Hebbal, and Trident Pune include 581 keys for 2029.
Internationally, the pipeline includes The Oberoi London, The Oberoi Kathmandu, The Oberoi Bhutan, The Oberoi Bardia, The Oberoi Diriyah, and two luxury boats including the Nile Cruiser including 288 keys.
Additionally, mixed-use developments will feature commercial, retail, and F&B spaces totaling approximately 11.71 lakh sq. ft. This strategic expansion shows EIH’s commitment to improving luxury hospitality experiences while focusing on sustainability and exceptional service across its diverse portfolio.
Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 589 crore which increased by 10.92 percent year on year, from Rs. 531 crore in Q2FY24 and an 11.76 percent increase from Rs. 527 crore in Q1FY25. Their net profit increased by 41.48 percent year on year, from Rs. 94 crores in Q2FY24 to Rs. 133 crores in Q2FY25. Quarterly, the profits were up by 37 percent from Rs. 97 crore.
The debt-to-equity ratio was 0.06 times slightly declining from 0.11 times in FY23. The RoE in FY24 stood at 18.53 percent improved from 11.89 percent a year ago. However, the RoCE stood at 23.75 percent which has improved from 15.77 percent in FY23.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a share of 32.85 percent stake in The Indian Hotels Company, Foreign Institutional Investors (FII) holding around 4.56 percent, Domestic Institutional investors (DII) standing at 14.61 percent, and public holdings standing at 47.98 percent.
About the company
EIH Limited was incorporated in 1949. It is the flagship company of the Oberoi Group, renowned for its luxury hospitality services. It is Headquartered in Kolkata and operates premium hotels and resorts under the Oberoi and Trident brands, along with a luxury cruiser on the Nile.
The company also provides services for airport restaurants, flight catering, and project management. Their business model focuses on delivering exceptional service and experiences to both leisure and business travelers. The quarterly occupancy rate as of September 2024 stood at 72 percent.
Written by Santhosh S
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