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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

EIH Associated Hotels Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:50 pm

Market Cap 2,338 Cr.
Current Price 384
High / Low545/217
Stock P/E27.9
Book Value 73.9
Dividend Yield1.56 %
ROCE25.1 %
ROE18.8 %
Face Value 10.0
PEG Ratio2.65

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for EIH Associated Hotels Ltd

Competitors of EIH Associated Hotels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of EIH Associated Hotels Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales37481345776160591111086759127
Expenses32422639504849526676565874
Operating Profit46-1362613117453210052
OPM %12%13%-104%14%35%21%18%11%41%30%16%1%41%
Other Income0-301101123333
Interest0000000000000
Depreciation4444444444444
Profit before tax0-1-17323984423110-151
Tax %64%27%42%102%30%29%30%27%29%15%25%24%25%
Net Profit0-1-10-01676330267-138
EPS in Rs0.05-0.31-3.21-0.025.252.211.860.859.908.592.38-0.3012.43

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales188212216229245264264264249101195337344
Expenses132148153163172190195199196119163242256
Operating Profit566463667474686553-18339588
OPM %30%30%29%29%30%28%26%25%21%-17%17%28%26%
Other Income400128586-22711
Interest2722119520001001
Depreciation13131319161414141617161716
Profit before tax203038405565595843-37188582
Tax %32%31%38%38%29%34%36%35%12%28%30%24%
Net Profit132024253943383838-27136563
EPS in Rs4.386.737.738.1212.7814.0412.4012.4512.46-8.784.2321.2120.57
Dividend Payout %44%15%39%37%31%32%36%36%0%0%0%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)53.85%20.00%4.17%56.00%10.26%-11.63%0.00%0.00%-171.05%148.15%400.00%
Change in YoY Net Profit Growth (%)0.00%-33.85%-15.83%51.83%-45.74%-21.88%11.63%0.00%-171.05%319.20%251.85%

EIH Associated Hotels Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:8%
3 Years:56%
TTM:15%
Compounded Profit Growth
10 Years:13%
5 Years:16%
3 Years:79%
TTM:34%
Stock Price CAGR
10 Years:13%
5 Years:20%
3 Years:30%
1 Year:76%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:14%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:35 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital30303030303030303030303061
Reserves168181186212251272293315288302366432389
Borrowings102746335121322544
Other Liabilities49971185063728699687810397104
Total Liabilities349382397328345376411447389412504563558
Fixed Assets278271263256248243252283279278276302294
CWIP211133456512814
Investments1111194045515174140153137
Other Assets69109132707590110108545577100113
Total Assets349382397328345376411447389412504563558

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +5251536673576057-12389178
Cash from Investing Activity +-6-8-24-15-26-46-42-349-37-89-64
Cash from Financing Activity +-50-42-29-55-40-16-17-18-1-1-2-17
Net Cash Flow-410-47-515-411-3

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow56.00-38.00-11.003.0039.0073.0066.0064.0050.00-20.0031.0090.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days313141373240443626141721
Inventory Days163200202208188184209
Days Payable387491516470480671884
Cash Conversion Cycle-193-260-274-225-26040-444-63926141721
Working Capital Days303250-0593-20-47-29-26-14
ROCE %16%17%18%22%24%20%19%14%-9%6%23%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Aug 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs13.25%13.31%13.36%13.41%13.42%13.41%13.75%13.88%13.81%13.68%13.74%13.85%
Public11.75%11.70%11.65%11.60%11.59%11.59%11.25%11.11%11.20%11.33%11.27%11.16%
No. of Shareholders9,42110,33210,12210,57510,66810,79210,50311,91813,12813,92016,68520,143

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)26.5921.214.23-8.7812.46
Diluted EPS (Rs.)26.5921.214.23-8.7812.46
Cash EPS (Rs.)32.1326.649.38-3.2117.70
Book Value[Excl.RevalReserv]/Share (Rs.)151.91130.16109.08104.62113.29
Book Value[Incl.RevalReserv]/Share (Rs.)151.91130.16109.08104.62113.29
Dividend / Share (Rs.)6.005.000.000.000.00
Revenue From Operations / Share (Rs.)126.29110.6364.0633.2881.75
PBDIT / Share (Rs.)41.4833.4011.44-5.1619.50
PBIT / Share (Rs.)35.9527.986.29-10.7314.26
PBT / Share (Rs.)35.6927.856.04-12.1914.11
Net Profit / Share (Rs.)26.5921.214.23-8.7812.46
PBDIT Margin (%)32.8430.1917.85-15.5023.85
PBIT Margin (%)28.4625.289.81-32.2317.44
PBT Margin (%)28.2525.179.42-36.6317.26
Net Profit Margin (%)21.0519.176.59-26.3715.24
Return on Networth / Equity (%)17.5016.293.87-8.3810.99
Return on Capital Employeed (%)21.7819.485.24-9.4311.31
Return On Assets (%)14.3712.813.12-6.868.49
Asset Turnover Ratio (%)0.720.730.480.240.58
Current Ratio (X)3.923.002.432.052.22
Quick Ratio (X)3.682.772.181.812.04
Dividend Payout Ratio (NP) (%)18.800.000.000.0036.11
Dividend Payout Ratio (CP) (%)15.560.000.000.0025.42
Earning Retention Ratio (%)81.200.000.000.0063.89
Cash Earning Retention Ratio (%)84.440.000.000.0074.58
Interest Coverage Ratio (X)158.79261.64103.12-29.67133.23
Interest Coverage Ratio (Post Tax) (X)102.79167.1140.39-42.0586.12
Enterprise Value (Cr.)2263.791241.861320.69707.12600.41
EV / Net Operating Revenue (X)5.883.686.776.972.41
EV / EBITDA (X)17.9112.2037.89-44.9710.10
MarketCap / Net Operating Revenue (X)5.993.746.817.052.57
Retention Ratios (%)81.190.000.000.0063.88
Price / BV (X)4.983.184.002.241.85
Price / Net Operating Revenue (X)5.993.746.817.052.57
EarningsYield0.030.050.01-0.030.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of EIH Associated Hotels Ltd as of November 25, 2024 is: 393.67

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 25, 2024, EIH Associated Hotels Ltd is Undervalued by 2.52% compared to the current share price 384.00

Intrinsic Value of EIH Associated Hotels Ltd as of November 25, 2024 is: 435.19

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 25, 2024, EIH Associated Hotels Ltd is Undervalued by 13.33% compared to the current share price 384.00

Last 5 Year EPS CAGR: 10.55%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -0.58, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -181.42, which is a positive sign.
  4. The company has higher reserves (281.15 cr) compared to borrowings (22.92 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (239.08 cr) and profit (42.77 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in EIH Associated Hotels Ltd:
      1. Net Profit Margin: 21.05%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 21.78% (Industry Average ROCE: 0.59%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 17.5% (Industry Average ROE: 0.49%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 102.79
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 3.68
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 27.9 (Industry average Stock P/E: 0)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    EIH Associated Hotels Ltd. is a Public Limited Listed company incorporated on 21/03/1983 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L92490TN1983PLC009903 and registration number is 009903. Currently company belongs to the Industry of Hotels, Resorts & Restaurants. Company’s Total Operating Revenue is Rs. 195.19 Cr. and Equity Capital is Rs. 30.47 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Hotels, Resorts & Restaurants1/24, G.S.T. Road, Chennai (Madras) Tamil Nadu 600027isdho@oberoigroup.com
    http://www.eihassociatedhotels.in
    Management
    NamePosition Held
    Mr. Arjun Singh OberoiNon Executive Chairman
    Mr. Vikramjit Singh OberoiManaging Director
    Mr. Akshay RahejaDirector
    Mr. Sudipto SarkarIndependent Director
    Ms. Radhika Vijay HaribhaktiIndependent Director
    Mr. Surin Shailesh KapadiaIndependent Director

    FAQ

    What is the latest intrinsic value of EIH Associated Hotels Ltd?

    The latest intrinsic value of EIH Associated Hotels Ltd as on 25 November 2024 is ₹393.67, which is 2.52% higher than the current market price of ₹384.00.

    What is the Market Cap of EIH Associated Hotels Ltd?

    The Market Cap of EIH Associated Hotels Ltd is 2,338 Cr..

    What is the current Stock Price of EIH Associated Hotels Ltd as on 25 November 2024?

    The current stock price of EIH Associated Hotels Ltd as on 25 November 2024 is 384.

    What is the High / Low of EIH Associated Hotels Ltd stocks in FY 2024?

    In FY 2024, the High / Low of EIH Associated Hotels Ltd stocks is 545/217.

    What is the Stock P/E of EIH Associated Hotels Ltd?

    The Stock P/E of EIH Associated Hotels Ltd is 27.9.

    What is the Book Value of EIH Associated Hotels Ltd?

    The Book Value of EIH Associated Hotels Ltd is 73.9.

    What is the Dividend Yield of EIH Associated Hotels Ltd?

    The Dividend Yield of EIH Associated Hotels Ltd is 1.56 %.

    What is the ROCE of EIH Associated Hotels Ltd?

    The ROCE of EIH Associated Hotels Ltd is 25.1 %.

    What is the ROE of EIH Associated Hotels Ltd?

    The ROE of EIH Associated Hotels Ltd is 18.8 %.

    What is the Face Value of EIH Associated Hotels Ltd?

    The Face Value of EIH Associated Hotels Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in EIH Associated Hotels Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE