Buy EIH, target price Rs 240: ICICI Direct

ICICI Direct has buy call on EIH with a target price of Rs 240. The current market price of EIH Ltd. is Rs 193. Time period given by analyst is one year when EIH Ltd. price can reach defined target.

EIH Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 12082.04 Crore) operating in Tourism & Hospitality sector.

EIH Ltd. key Products/Revenue Segments include Income (Room Rent), Beverages & Food, Other Services and Printed Materials for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 412.33 Crore, up 30.14 % from last quarter Total Income of Rs 316.84 Crore and up 272.64 % from last year same quarter Total Income of Rs 110.65 Crore. Company reported net profit after tax of Rs 68.47 Crore in latest quarter.

Investment Rationale
Given the company’s strong b/s, strategic premium room portfolio, the brokerage remains positive on the stock with a revised TP of Rs 240/share (i.e. at 28.5x FY24E EV/EBITDA).

Promoter/FII Holdings
Promoters held 35.74 per cent stake in the company as of 30-Jun-2022, while FIIs owned 3.73 per cent, DIIs 13.88 per cent.