EIH Shares Tumble 10% After Q1 Profit Falls, Misses Estimates
The Oberoi and Trident hotel operators' consolidated net profit fell 8.5% on the year to Rs 97 crore during the quarter ended June 2024, missing Bloomberg's estimate of Rs 124 crore.
Shares of EIH Ltd. tumbled over 10% to a one-month low on Wednesday after its first-quarter profit fell, missing analysts' estimates.
The Oberoi and Trident hotel operators' consolidated net profit fell 8.5% on the year to Rs 97 crore during the quarter ended June 2024, according to an exchange filing. That compares with the consensus estimate of Rs 124 crore projected by analysts polled by Bloomberg.
The decline in the bottom line follows a 550 basis point margin decrease to 25.61% from 31.1%, as total expense grew more than the topline. During the same period, the company's total expenses rose 9.48% year-on-year to Rs 497.82 crore.
The consolidated top line of EIH grew 5.8% on the year to Rs 527 crore from Rs 498 crore. The consolidated operating profit fell 12.9% on the year to Rs 135 crore.
Shares of EIH tumbled 10.08% to Rs 356.65, the lowest level since Feb 6. It pared losses to trade 3.59% lower at Rs 382.40 as of 11:35 a.m., compared to 0.96% advance in the NSE Nifty 50 index.
The stock gained 52.64% in 12 months and 52.02% on year to date basis. Total traded volume so far in the day stood at 6.67 times its 30-day average. The relative strength index was at 29.46, which implied the stock is oversold.
Both the analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 23.5%
