EIH Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 24
- 2 min read
by KarNivesh | 24 September, 2025
When we talk about luxury hotels in India, EIH Limited – the flagship company of The Oberoi Group – stands as a shining example of excellence and resilience. Known for its Oberoi and Trident brands, EIH has always been a trusted name in luxury hospitality. But what makes its story truly inspiring is how it bounced back stronger than ever after the tough COVID-19 years.
A Remarkable Turnaround
Like most companies in the travel and hotel sector, EIH was hit hard during the pandemic. Revenues and profits took a big dip, and things looked uncertain. But fast forward to FY2025, the company has not only recovered but set record financial performance with revenue of ₹2,880 crores and net profit of ₹770 crores. This kind of turnaround shows how well the company managed challenges and how strong the demand for luxury travel has become once again.
Strong Financial Health
What stands out about EIH today is its solid financial footing. The company’s margins and profitability have improved significantly, with net profit margins at 25.7% and operating margins consistently above 30%. EIH also has a very low debt-to-equity ratio of 0.06, making it virtually debt-free. This means it has more freedom to invest in growth without worrying about heavy borrowings.
Even during quarterly performances, EIH has been consistent, maintaining high margins and strong revenues. This shows the company is not just depending on one good year but has built a stable business model.
Expansion and Growth Plans
Looking ahead, EIH has an exciting roadmap. By 2030, it plans to add 25 new properties, including both hotels and luxury boats. Out of these, 16 will be in India while 9 will be international, with destinations like London, Egypt, Bhutan, Nepal, and Saudi Arabia. This reflects the company’s confidence in the growing luxury tourism sector in India and abroad.
Balanced Ownership and Governance
The shareholding structure of EIH also inspires confidence. Promoters hold about 32.85%, while retail investors make up nearly half of the ownership at 47.46%. This balance ensures that while the Oberoi family continues to provide leadership and vision, there’s also strong participation from everyday investors and institutions.
An Attractive Investment Story
From an investor’s perspective, EIH Limited looks appealing. The stock trades at a lower valuation compared to bigger peers like Indian Hotels Company and ITC Hotels, even though its profitability and efficiency metrics are stronger. With a respected brand name, strong balance sheet, and robust expansion pipeline, EIH presents itself as a value opportunity in the luxury hospitality space.
The Road Ahead
Of course, like any hospitality business, EIH faces risks – mainly its dependence on tourism and economic conditions. Luxury travel can be sensitive to slowdowns. But with its diversified revenue streams, strong cash position, and premium positioning, the company is well-prepared to handle challenges.
In short, EIH Limited is more than just a hotel company – it’s a story of resilience, growth, and confidence in the future of luxury travel. For those looking at India’s expanding hospitality market, EIH is a name worth watching.
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