Reasons Why I Like EIH Limited (NSE:EIHOTEL)

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on EIH Limited (NSEI:EIHOTEL) due to its excellent fundamentals in more than one area. EIHOTEL is a company with great financial health as well as a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on EIH here.

Flawless balance sheet with solid track record

EIHOTEL delivered a bottom-line expansion of 68.95% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, EIHOTEL also outperformed its industry, which delivered a growth of 22.83%. This is what investors like to see! EIHOTEL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that EIHOTEL manages its cash and cost levels well, which is an important determinant of the company’s health. EIHOTEL’s has produced operating cash levels of 0.56x total debt over the past year, which implies that EIHOTEL’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:EIHOTEL Income Statement Jun 18th 18

Next Steps:

For EIH, I’ve compiled three important aspects you should look at:

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.