📊 EIH Limited (The Oberoi Group) – FY25 Strategic Investment Analysis Report
📈 Company Growth and Financials
| Metric | Q3 FY24 | Q3 FY25 | Growth (YoY) |
|---|---|---|---|
| Standalone Revenue | ₹652.1 Cr | ₹695.4 Cr | 🔼 +7% |
| Standalone PAT | ₹186.9 Cr | ₹219.7 Cr | 🔼 +18% |
| Standalone EBITDA | ₹308.5 Cr | ₹329.5 Cr | 🔼 +7% |
| Consolidated Revenue | ₹741.3 Cr | ₹800.2 Cr | 🔼 +8% |
| Consolidated PAT | ₹229.9 Cr | ₹278.8 Cr | 🔼 +21% |
✅ Key Takeaway: EIH has shown strong YoY and QoQ growth in revenue, profit and EBITDA, hitting all-time high Q3 results.
🟢 Order Book and Business Expansion
| Aspect | Details |
| Current Order Book | Not numerically stated but includes 19 new hotel projects (domestic & global) |
| Expansion Strategy | Mixed-use projects, 7.6 lakh+ sq. ft F&B/Commercial space, new destinations |
| New Business Verticals | Luxury Cruises, International Wellness Resorts, Experiential Travel |
| Operational Capacity | ~3,700+ keys India + ~500 keys overseas across 50+ iconic properties |
✅ Key Takeaway: Strong pipeline of 1,164 new keys will ensure business scalability & brand dominance.
🟢 Future Projections
| Metric | Insight |
| ARR Growth | ₹19,348 → ₹22,526 YoY (+16%) 📈 |
| Occupancy Growth | 79% → 83% YoY 📶 |
| RevPAR | ₹5,785 → ₹6,097 YoY (+16%) |
| Strategic Projects | The Oberoi London, The Oberoi Hebbal, Trident Tirupati, Diriyah KSA |
Revenue, Profit, EPS Forecasts
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Q4 FY25: Peak season (Jan–Mar) typically doubles Q2 revenue. Expect ~₹140–₹150 crore, with EBITDA ~₹60–₹65 crore and PAT ~₹42–₹45 crore, assuming 5–7% YoY growth.
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FY26: Full-year revenue could hit ₹600–₹650 crore (20% CAGR from FY24’s ~₹500 crore est.), with PAT ~₹150–₹160 crore, driven by Visakhapatnam and RevPAR gains (industry +5–7% ARR). EPS may rise to ₹2.4–₹2.6 from ~₹2.0 (est. FY24).
Strategic Partnerships & Projects
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Trident Visakhapatnam: Key pipeline project, no timeline yet, but boosts South India presence.
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Partnerships: Cochin lease to Fern Hotels (Q3 FY25) suggests a shift to asset-light models, freeing capital for growth. No major tie-ups announced, but Oberoi’s brand strength hints at potential luxury collaborations.
✅ Key Takeaway: Projected ARR, occupancy, and pipeline hotels to drive consistent revenue & margin improvement.
🟢 Debt and Financial Health
| Parameter | Status |
| Debt Status | Net Cash Positive since FY23 ✅ |
| Consolidated Funds Position | ₹786 Cr as of Dec 2024 💼 |
| Debt Impact | Negligible – zero pressure on EPS or margins 🟢 |
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Debt Levels: Finance costs are negligible—₹0.1 crore in Q3 FY25 (vs. ₹0.5 crore Q2 FY24), implying debt <₹10 crore. Debt-to-equity ratio 0.01–0.03 (est.), far below industry norms (0.5).
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Cash Flow: Q3 FY25 EBITDA (₹57.9 crore) and net worth (₹345 crore, up from ₹319 crore in FY21) signal robust cash generation. Capex for Visakhapatnam likely self-funded.
✅ Key Takeaway: EIH’s balance sheet strength ensures growth is funded internally without debt stress.
🟢 Market Size and Opportunities
| Segment | Market Outlook |
| Hospitality | ₹5L Cr+ by FY30 (India) 📊 |
| Wellness Tourism | Booming post-COVID recovery 💆♀️ |
| MICE + Weddings | Structural industry tailwind 💍 |
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Domestic: India’s hotel market is ~$20 billion (₹1.6 lakh crore), with luxury at ~15% (₹24,000 crore). EIH’s 318 keys tap <1% of this, but premium RevPAR (outpacing industry) gives outsized revenue share.
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Global: Oberoi’s brand extends to 50+ countries via inbound tourism (Q2 FY25 presentation), with TAM ~$50 billion in luxury travel. Expansion is India-focused, limiting global scale.
Opportunities & Risks
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Opportunities: Domestic air traffic (+12% vs. pre-COVID, Q3 FY25), MICE, weddings, and luxury wellness (presentation highlights) favor EIH’s niche. RevPAR growth (+26–28% vs. 2019) is a tailwind.
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Risks: Over-reliance on luxury exposes it to economic slowdowns or travel curbs. Competitors like IHCL (Taj) scale faster.
✅ Key Takeaway: Luxury travel, destination weddings, wellness tourism, and MICE are booming—EIH is perfectly positioned.
🟢 Regulatory and Market Influences
| Parameter | Observation |
| Regulatory Flags | None observed ✅ |
| Promoter Holding | Stable, no dilution/pledge 📊 |
| Market Sentiment | Positive (Sector-wide rerating + brand pull) 📈 |
✅ Key Takeaway: No SEBI/ASM issues, strong promoter trust and consistent FII/DII support.
🟢 Technical Analysis
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Current Price: ~₹350–₹355 (March 18, est. from ₹346.10, March 12).
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Support: ₹300–₹310 (Feb 2025 low, 200-month MA). Strong base.
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Resistance: ₹400–₹410 (multi-year high zone), then ₹500–₹510 (2024 peak).
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Trend:
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Short-Term (1–3 Months): Bullish consolidation, RSI ~50 (rising), MACD nearing crossover. Targets ₹380–₹390.
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Medium-Term (6–12 Months): Uptrend intact if ₹400 breaks, eyeing ₹450–₹470.
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Long-Term (2–5 Years): ₹600–₹650 possible with RevPAR and expansion, assuming no macro shocks.
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Key Takeaway: Bounce from ₹300 support signals upside to ₹400 short-term, with long-term potential if momentum holds.
🟢 Valuation and Investment Outlook
| Factor | Outlook |
| Valuation | Fairly valued. P/E ~35–38 (est. FY25 EPS ₹2.0–₹2.2), vs. sector ~48. Fairly valued, with growth justifying premium over historical ~20–25. |
| ROE/ROCE | Improving YoY (ROE ~14–16%) 💼 |
| EPS Trajectory | Positive CAGR for 3Y ahead ✔️ |
✅ Key Takeaway: Strong future potential, high brand equity, robust expansion pipeline—ideal for long-term compounding.
❓FAQs
- Is EIH Ltd a good investment in 2025? ✅ Yes, with robust financials, brand value, and long-term expansion plans.
- What is the future outlook of Oberoi Hotels? 📈 Positive with ARR growth, RevPAR leadership, and global footprint.
- Does EIH Ltd have debt? ❌ No, the company is net cash positive with strong reserves.
- What are the upcoming hotel projects of EIH Ltd? 🏨 19+ new properties including The Oberoi London, Diriyah, Goa, Nepal, and more.
- How does EIH compare with peers? 🏆 Market-leading RevPAR, premium positioning, international recognition.
- What is EIH’s ARR and occupancy growth trend? 🔼 Steady YoY improvement, reaching 83% occupancy and ₹22,526 ARR.
