EIH Associated Hotels Ltd. share price target

With the tourism sector being a major contributor to the country's GDP and net foreign exchange earner, it remains a key focus area for the government. Earlier reforms by the government to improve connectivity and boost the tourism ecosystem - Incredible India 2.0, extension of e-visa, reduction in visa fees, UDAAN have fared well in the past. It recently got a booster with the announcement of a GST rate cut for hotels and corporate tax rate cut. Reduction of GST rates will make the cost of a tour in India more competitive among South East Asian regions. This will help improve foreign tourist flows...

ICICI Securities Ltd | Retail Equity Research EIH's results were broadly above our estimate. The re-opening of New Delhi property has started gaining traction and positively contributed to revenues and margins in Q1FY19 Consequently, revenues increased 17.7% YoY to | 335.0 crore (above I-direct estimate of | 322.6 crore). EBITDA increased 73.0% YoY to | 48.3 crore (vs. I-direct estimate of | 41.9 crore). On the margin front, the EBITDA margin increased 461 bps YoY to 14.4%...

EIH reported a good set of Q3FY17 numbers. Revenues declined 6.4% YoY to | 375.4 crore (vs. I-direct estimate of | 373.0 crore) mainly led by closure of The Oberoi, New Delhi for renovation. However, adjusting for The Oberoi, New Delhi revenues (which contributed 14% to overall revenues) we believe revenues increased ~9% YoY mainly due to an increase in management fees and opening of a new hotel in Chandigarh EBITDA margin also improved 315.8 bps YoY to 29.6% (vs. I-direct...