EIH: Is the quality hotel stock worth a look at this juncture?
With improved vaccination, the hotel industry is expected to reach pre-COVID levels by FY23
May 11, 2021 / 03:22 PM IST
EIH | The company reported loss at Rs 55.73 crore in Q3FY21 against profit of Rs 95.06 crore, revenue fell to Rs 179.16 crore from Rs 509.55 crore YoY.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
EIH (erstwhile East India Hotels) Ltd (CMP: Rs 89; Market Capitalisation: Rs 5,594 crore) witnessed continued sequential improvement in revenues in the March 2021 quarter.
However, the second wave of COVID-19 and the resultant lockdowns and restrictions in several states are likely to affect demand. With increased vaccination, the hotel industry is confident of reaching the pre-COVID levels by FY2023.
What makes the industry confident of recovery this time around (as compared to the first wave) is the gradual availability of...