ICICI Direct has given Buy recommendation for EIH with a target price of Rs. 125 in its research report issued on Feb 04, 2021

ICICI Direct’s research report on EIH

EIH’s operational performance in Q3FY21 improved sequentially with the pick-up in domestic travel. EIH’s revenues for the quarter grew ~157.9% QoQ to Rs 155.9 crore (vs. I-direct estimate of Rs 114.8 crore). However, on YoY basis, revenue declined 63.1% as foreign tourist arrivals continued to remain affected by Covid induced restricted travel. The company managed to curtail operating expenditure by over 39% YoY to Rs 183.2 crore. The major reduction was in other expenses that were down 44.4% YoY to Rs 84.5 crore. This helped restrict EBITDA losses to Rs 27.3 crore vs. EBITDA loss of Rs 42.9 crore in Q2FY21. Net loss came in at Rs 41.5 crore for the quarter vs. net loss of Rs 115.2 crore in Q2FY21. EIH is well placed on the liquidity front post fund raising of Rs 349.7 crore through rights issue in October 2020.


We maintain BUY with a revised TP of Rs 125/share (@ 28x FY22E EV/EBITDA) (earlier TP Rs 95) .

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