EIH Limited (NSE:EIHOTEL): The Best Of Both Worlds

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on EIH Limited (NSE:EIHOTEL) due to its excellent fundamentals in more than one area. EIHOTEL is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on EIH here.

Flawless balance sheet with solid track record

Over the past year, EIHOTEL has grown its earnings by 68.95%, with its most recent figure exceeding its annual average over the past five years. Not only did EIHOTEL outperformed its past performance, its growth also exceeded the Hospitality industry expansion, which generated a 22.83% earnings growth. This is what investors like to see! EIHOTEL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. EIHOTEL seems to have put its debt to good use, generating operating cash levels of 0.56x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NSEI:EIHOTEL Income Statement June 27th 18

Next Steps:

For EIH, I’ve compiled three fundamental factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for EIHOTEL’s future growth? Take a look at our free research report of analyst consensus for EIHOTEL’s outlook.

2. Valuation: What is EIHOTEL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EIHOTEL is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EIHOTEL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.