EIH (EIHOTEL)

FairStock Score: 71/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I run my ruler over EIH and see a well-financed hotel business, not a bargain. At ₹300.35, with a market cap of ₹18,783 Cr, P/E 26.39 and P/B 3.57, Mr. Market is paying up. Book value is ₹84.15, the Graham Number is ₹130.68, and DCF intrinsic value is ₹56.04; the margin of safety is -139.93%. That tells me the price already assumes a lot. The business has merits: ROCE 23.43%, ROE 13.95%, debt/equity only 0.05, free cash flow ₹401 Cr, Piotroski F-Score 7/9 and Altman Z-Score 3.87. The latest quarter showed sales of ₹873 Cr and net profit of ₹255 Cr, a strong profit outcome, though profit growth of 249.53% is unlikely to repeat. Sales growth is only 5.02%, while the 5-year revenue CAGR is 11.44%, so the top line is steady rather than explosive. Hotels are cyclical, so I would treat the latest quarter and high profit growth with caution. Promoter holding of 32.85% and dividend yield of 0.50% do not add much extra comfort. The negative EV/EBITDA of -38.28 is also difficult to interpret. FairStock Score 71/100 STEADY captures it: a decent, low-debt, cash-generating hotel operator. But as Graham would say, quality does not justify any price. I would wait for a wider discount or a lower price before calling it a value investment.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer