EIH Q1 Results Review - Heat-Wave Impacted Leisure Demand In The Quarter: Nirmal Bang

Nirmal Bang Report

EIH Ltd.’s operating performance in Q1 FY25 was impacted by lower Leisure demand due to the heat wave, delay in renovations and weakness in select International properties.

For domestic hotels (including managed properties), revenue per available room grew by ~3% YoY during Q1 FY25.

In the domestic portfolio, Trident metro segment witnessed the highest improvement in occupancy on YoY basis. In International markets, only Indonesia saw improvement in Occupancy.

We have tweaked our estimates assuming partial room closures during renovation over the next two years.

While we are positive on the overall luxury category, limited room additions in EIH in the near-term should restrict earnings growth to an extent.

Maintain Accumulate with a revised target price of Rs 420 (22 times enterprise value/Ebitda on Sep-26E).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.