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EIH

NSEI:EIHOTEL
Snowflake Description

Mediocre balance sheet with poor track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EIHOTEL
NSEI
₹89B
Market Cap
  1. Home
  2. IN
  3. Consumer Services
Company description

EIH Limited engages in the ownership, management, and operation of hotels and cruisers in India and internationally. The last earnings update was 33 days ago. More info.


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EIHOTEL Share Price and Events
7 Day Returns
-5.2%
NSEI:EIHOTEL
-10.2%
IN Hospitality
-1.3%
IN Market
1 Year Returns
-16.6%
NSEI:EIHOTEL
-17.1%
IN Hospitality
5.2%
IN Market
EIHOTEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
EIH (EIHOTEL) -5.2% -3.1% -2.3% -16.6% 53.4% 32.9%
IN Hospitality -10.2% -7.5% 4.9% -17.1% 21.6% 22.8%
IN Market -1.3% -1.2% 8.3% 5.2% 23.4% 26.8%
1 Year Return vs Industry and Market
  • EIHOTEL matched the Hospitality industry (-17.1%) over the past year.
  • EIHOTEL underperformed the Market in India which returned 5.2% over the past year.
Price Volatility
EIHOTEL
Industry
5yr Volatility vs Market

EIHOTEL Value

 Is EIH undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of EIH to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for EIH.

NSEI:EIHOTEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:EIHOTEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.912 (1 + (1- 35%) (7.73%))
0.972
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.972 * 7.85%)
14.11%

Discounted Cash Flow Calculation for NSEI:EIHOTEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for EIH is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:EIHOTEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.11%)
2020 1,097.41 Est @ 32.47% 961.74
2021 1,368.13 Est @ 24.67% 1,050.77
2022 1,630.99 Est @ 19.21% 1,097.79
2023 1,882.04 Est @ 15.39% 1,110.17
2024 2,121.42 Est @ 12.72% 1,096.67
2025 2,351.54 Est @ 10.85% 1,065.35
2026 2,575.81 Est @ 9.54% 1,022.69
2027 2,797.84 Est @ 8.62% 973.51
2028 3,021.05 Est @ 7.98% 921.23
2029 3,248.50 Est @ 7.53% 868.12
Present value of next 10 years cash flows ₹10,168.00
NSEI:EIHOTEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹3,248.50 × (1 + 6.48%) ÷ (14.11% – 6.48%)
₹45,355.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹45,355.33 ÷ (1 + 14.11%)10
₹12,120.67
NSEI:EIHOTEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹10,168.00 + ₹12,120.67
₹22,288.67
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹22,288.67 / 571.57
₹39
NSEI:EIHOTEL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:EIHOTEL represents 0.99445x of BSE:500840
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99445x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 39.00 x 0.99445
₹38.78
Value per share (INR) From above. ₹38.78
Current discount Discount to share price of ₹152.20
= -1 x (₹152.20 - ₹38.78) / ₹38.78
-292.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of EIH is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for EIH's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are EIH's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:EIHOTEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in INR ₹2.26
BSE:500840 Share Price ** BSE (2019-12-05) in INR ₹153.05
India Hospitality Industry PE Ratio Median Figure of 44 Publicly-Listed Hospitality Companies 21.3x
India Market PE Ratio Median Figure of 2,633 Publicly-Listed Companies 12.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of EIH.

NSEI:EIHOTEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500840 Share Price ÷ EPS (both in INR)

= 153.05 ÷ 2.26

67.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EIH is overvalued based on earnings compared to the IN Hospitality industry average.
  • EIH is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does EIH's expected growth come at a high price?
Raw Data
NSEI:EIHOTEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 67.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
India Hospitality Industry PEG Ratio Median Figure of 11 Publicly-Listed Hospitality Companies 2.09x
India Market PEG Ratio Median Figure of 601 Publicly-Listed Companies 1.1x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for EIH, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on EIH's assets?
Raw Data
NSEI:EIHOTEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in INR ₹52.08
BSE:500840 Share Price * BSE (2019-12-05) in INR ₹153.05
India Hospitality Industry PB Ratio Median Figure of 65 Publicly-Listed Hospitality Companies 1.02x
India Market PB Ratio Median Figure of 3,565 Publicly-Listed Companies 0.85x
NSEI:EIHOTEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500840 Share Price ÷ Book Value per Share (both in INR)

= 153.05 ÷ 52.08

2.94x

* Primary Listing of EIH.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EIH is overvalued based on assets compared to the IN Hospitality industry average.
X
Value checks
We assess EIH's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. EIH has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EIHOTEL Future Performance

 How is EIH expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is EIH expected to grow at an attractive rate?
  • Unable to compare EIH's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare EIH's earnings growth to the India market average as no estimate data is available.
  • EIH's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:EIHOTEL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:EIHOTEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 8.9%
India Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 32.6%
India Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
India Market Earnings Growth Rate Market Cap Weighted Average 19.8%
India Market Revenue Growth Rate Market Cap Weighted Average 11.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:EIHOTEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:EIHOTEL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 19,426 3,327 1
2020-03-31 17,250 3,893 1
2019-12-08
NSEI:EIHOTEL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-09-30 17,181 3,223 1,294
2019-06-30 17,719 1,155
2019-03-31 18,196 2,913 1,315
2018-03-31 16,025 2,718 1,792
2017-03-31 15,785 2,433 1,031

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if EIH is high growth as no earnings estimate data is available.
  • EIH's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:EIHOTEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from EIH Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:EIHOTEL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-03-31
2019-12-08
NSEI:EIHOTEL Past Financials Data
Date (Data in INR Millions) EPS *
2019-09-30 2.26
2019-06-30 2.06
2019-03-31 2.30
2018-03-31 3.14
2017-03-31 1.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if EIH will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess EIH's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
EIH has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EIHOTEL Past Performance

  How has EIH performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare EIH's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • EIH's year on year earnings growth rate has been positive over the past 5 years.
  • EIH's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • EIH's 1-year earnings growth is negative, it can't be compared to the IN Hospitality industry average.
Earnings and Revenue History
EIH's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from EIH Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:EIHOTEL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 17,180.51 1,293.51 831.96
2019-06-30 17,718.61 1,155.11 831.96
2019-03-31 18,196.21 1,315.41 831.96
2018-03-31 16,024.97 1,792.02 725.59
2017-03-31 15,785.47 1,031.13 833.70
2016-03-31 16,664.24 1,310.67 851.33
2015-03-31 16,682.72 631.00 824.45
2014-03-31 15,605.53 1,071.15 1,709.37
2013-03-31 14,926.88 417.73 1,715.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • EIH has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • EIH used its assets less efficiently than the IN Hospitality industry average last year based on Return on Assets.
  • EIH's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess EIH's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
EIH has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EIHOTEL Health

 How is EIH's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up EIH's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • EIH's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • EIH's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of EIH's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from EIH Company Filings, last reported 2 months ago.

NSEI:EIHOTEL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 30,563.20 6,873.50 2,556.00
2019-06-30 30,820.11 5,500.79 2,097.65
2019-03-31 30,820.11 5,405.17 2,097.65
2018-03-31 29,529.39 4,910.48 1,565.17
2017-03-31 28,364.33 3,480.55 1,196.70
2016-03-31 28,087.43 3,071.42 1,177.60
2015-03-31 26,876.90 4,100.66 1,986.98
2014-03-31 26,738.81 4,448.27 1,641.18
2013-03-31 26,501.15 7,299.40 1,632.78
  • EIH's level of debt (22.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (16% vs 22.2% today).
  • Debt is well covered by operating cash flow (47.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.5x coverage).
X
Financial health checks
We assess EIH's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. EIH has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EIHOTEL Dividends

 What is EIH's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.59%
Current annual income from EIH dividends. Estimated to be 0.72% next year.
If you bought ₹2,000 of EIH shares you are expected to receive ₹12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • EIH's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.6%).
  • EIH's dividend is below the markets top 25% of dividend payers in India (2.48%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:EIHOTEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 0.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1391 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:EIHOTEL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 1.10 1.00
2020-03-31 1.10 1.00
2019-12-08
NSEI:EIHOTEL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-07-16 0.900 0.555
2019-05-30 0.900 0.514
2018-07-06 0.900 0.509
2018-05-30 0.900 0.535
2017-07-07 0.900 0.582
2017-05-30 0.900 0.671
2016-03-11 1.100 1.009
2015-06-01 1.100 1.001
2014-05-30 1.100 1.057
2013-05-30 0.900 1.560
2012-09-03 1.100 1.627
2011-08-09 0.900 1.071
2010-05-31 1.200 1.160
2010-05-28 1.200 1.014
2009-07-01 1.200 0.964
2009-06-01 1.200 0.925

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of EIH's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess EIH's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can EIH afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. EIH has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EIHOTEL Management

 What is the CEO of EIH's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vikram Oberoi
COMPENSATION ₹35,840,000
AGE 56
TENURE AS CEO 4.7 years
CEO Bio

Mr. Vikramjit Singh Oberoi, also known as Vikram, serves as Managing Director at EIH Associated Hotels Ltd. Mr. Oberoi has been the Chief Executive Officer of EIH Ltd., April 1, 2015 and serves as its Managing Director. Mr. Oberoi served as a Joint Managing Director and Chief Operating Officer at EIH Ltd. He served as Joint Managing Director of Operations at EIH Ltd. He served as Deputy Managing Director of Operations for EIH Ltd. He served as the Chairman at EIH Ltd. He serves as an Executive Director of EIH Ltd., Mumtaz Hotels Limited and Island Hotel Maharaj Limited. He has been a Whole time Director of EIH Associated Hotels Ltd since March 22, 1977. Mr. Oberoi graduated in economics from the Pepperdine University USA.

CEO Compensation
  • Vikram's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Vikram's remuneration is about average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the EIH management team in years:

4.7
Average Tenure
56
Average Age
  • The tenure for the EIH management team is about average.
Management Team

Prithvi Raj Oberoi

TITLE
Executive Chairman
COMPENSATION
₹33M
AGE
90

Vikram Oberoi

TITLE
MD, CEO & Executive Director
COMPENSATION
₹36M
AGE
56
TENURE
4.7 yrs

Kallol Kundu

TITLE
Chief Financial Officer
COMPENSATION
₹22M
AGE
47
TENURE
1.2 yrs

Arjun Oberoi

TITLE
MD of Development & Executive Director
COMPENSATION
₹33M
AGE
50
TENURE
4.7 yrs

Shib Mukherji

TITLE
Executive Vice Chairman
COMPENSATION
₹37M
AGE
71

S. Sridhar

TITLE
Senior VP
COMPENSATION
₹7M
TENURE
8.3 yrs

Sanjay Rai

TITLE
Executive Vice President of Sales
COMPENSATION
₹10M
AGE
61

Manish Singh

TITLE
Senior Vice President of Marketing
AGE
47

Kanwaljeet Bakshi

TITLE
Executive Vice President of Human Resources
AGE
54

Arun Bahadur

TITLE
Executive Vice President of Engineering
COMPENSATION
₹10M
AGE
60
Board of Directors Tenure

Average tenure and age of the EIH board of directors in years:

8.2
Average Tenure
63.5
Average Age
  • The tenure for the EIH board of directors is about average.
Board of Directors

Vikram Oberoi

TITLE
MD, CEO & Executive Director
COMPENSATION
₹36M
AGE
56
TENURE
15.4 yrs

Arjun Oberoi

TITLE
MD of Development & Executive Director
COMPENSATION
₹33M
AGE
50
TENURE
15.4 yrs

Shib Mukherji

TITLE
Executive Vice Chairman
COMPENSATION
₹37M
AGE
71
TENURE
4.7 yrs

Anil Nehru

TITLE
Independent Director
COMPENSATION
₹900K
AGE
78
TENURE
17.1 yrs

Prithvi Raj Oberoi

TITLE
Executive Chairman
COMPENSATION
₹33M
AGE
90

Lakshminarayan Ganesh

TITLE
Independent Director
COMPENSATION
₹750K
AGE
65
TENURE
11.9 yrs

Nita Ambani

TITLE
Director
COMPENSATION
₹300K
AGE
57
TENURE
8.2 yrs

Manoj Modi

TITLE
Director
COMPENSATION
₹250K
AGE
62
TENURE
8.2 yrs

Rajeev Gupta

TITLE
Independent Director
COMPENSATION
₹900K
AGE
61
TENURE
7.1 yrs

Sudipto Sarkar

TITLE
Independent Director
COMPENSATION
₹400K
AGE
73
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess EIH's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. EIH has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EIHOTEL News

Simply Wall St News

Despite Its High P/E Ratio, Is EIH Limited (NSE:EIHOTEL) Still Undervalued?

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for EIH: P/E of 79.12 = ₹159.9 ÷ ₹2.02 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. … In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.

Simply Wall St -

Is It Smart To Buy EIH Limited (NSE:EIHOTEL) Before It Goes Ex-Dividend?

EIH's next dividend payment will be ₹0.90 per share, on the back of last year when the company paid a total of ₹0.90 to shareholders. … Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. … We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and EIH is halfway there.

Simply Wall St -

EIH (NSE:EIHOTEL) Has A Pretty Healthy Balance Sheet

NSEI:EIHOTEL Historical Debt, July 28th 2019 How Strong Is EIH's Balance Sheet? … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Did EIH's (NSE:EIHOTEL) Share Price Deserve to Gain 89%?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This EPS growth is slower than the share price growth of 14% per year, over the same period. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).

Simply Wall St -

Evaluating EIH Limited’s (NSE:EIHOTEL) Investments In Its Business

Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' How Do You Calculate Return On Capital Employed? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for EIH: 0.076 = ₹2.7b ÷ (₹43b - ₹6.5b) (Based on the trailing twelve months to March 2019.) So, EIH has an ROCE of 7.6%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

EIH Limited (NSE:EIHOTEL) Is Yielding 0.5% - But Is It A Buy?

Dividend paying stocks like EIH Limited (NSE:EIHOTEL) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. Earnings have grown at around 4.2% a year for the past five years, which is better than seeing them shrink! A payout ratio below 50% leaves ample room to reinvest in the business, and provides finanical flexibility. Earnings per share growth have grown slowly, which is not great, but if the retained earnings can be reinvested effectively, future growth may be stronger. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past.

Simply Wall St -

Should We Worry About EIH Limited's (NSE:EIHOTEL) P/E Ratio?

A higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. … Earnings growth means that in the future the 'E' will be higher. … The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And EIH (NSE:EIHOTEL) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … In the chart below, you can see how the company has grown earnings, and revenue, over time

Simply Wall St -

Do Directors Own EIH Limited (NSE:EIHOTEL) Shares?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … It has a market capitalization of ₹109b, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

The EIH (NSE:EIHOTEL) Share Price Is Up 154% And Shareholders Are Boasting About It

One great example is EIH Limited (NSE:EIHOTEL) which saw its share price drive 154% higher over five years. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, EIH achieved compound earnings per share (EPS) growth of 34% per year.

Simply Wall St -

EIHOTEL Company Info

Description

EIH Limited engages in the ownership, management, and operation of hotels and cruisers in India and internationally. It owns a 100% equity interest in the six ‘The Oberoi Hotels’ located in Mumbai, New Delhi, Kolkata, Bengaluru, Udaipur, and Ranthambhore, as well as in Agra, Jaipur, and Shimla. The company also has a 100% equity interest in and manages the Trident, Nariman Point and Trident, and Bandra-Kurla Complex in Mumbai; and 36% equity interest in the Trident Hotels located in Agra, Bhubaneswar, Chennai, Cochin, Jaipur, and Udaipur, as well as manages the Trident in Gurugram. Further, it owns and operates Oberoi Flight Services and Oberoi Airport Services, which provide catering and other services to international airlines; operates restaurants and lounges in various airports; operates a commercial printing press; and provides air charter, car rental, and project management services, as well as operates the Maidens Hotel in Delhi. EIH Limited was incorporated in 1949 and is based in Delhi, India.

Details
Name: EIH Limited
EIHOTEL
Exchange: NSEI
Founded: 1949
₹88,964,779,289
571,569,414
Website: http://www.eihltd.com
Address: EIH Limited
7, Sham Nath Marg,
Delhi,
Delhi, 110054,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500840 Equity Shares Mumbai Stock Exchange IN INR 09. Feb 1995
NSEI EIHOTEL Equity Shares National Stock Exchange of India IN INR 09. Feb 1995
Number of employees
Current staff
Staff numbers
9,270
EIH employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/08 12:49
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/11/18
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.