1. At a Glance
Luxury hotel OG of India. Killer brand recall (Oberoi, Trident). ROE at 18%, OPMs pushing 37%, debt-free. Oh, and planning 21 new properties. Peak hospitality flex incoming.
2. Introduction with Hook
If Taj is the Shah Rukh Khan of Indian hotels, then Oberoi is Irrfan Khan — classy, intense, never overexposed, but always elite.
Now back in full swing post-COVID, EIH is delivering EBITDA margins that feel like spa therapy — calm, consistent, and cash-generating.
- FY25 Net Profit: ₹770 Cr
- FY25 OPM: 37%
- Debt? A rounding error.
And wait — UK, Rishikesh, Pune, Tirupati — expansion mode ON.
3. Business Model (WTF Do They Even Do?)
- Segments: Luxury & premium hotels under Oberoi, Trident, Maidens.
- Side Hustles: Flight catering, airport F&B, luxury cruisers, charters, and project management.
- Geography: PAN India presence + now expanding abroad (EIH London Investments).
- Room Count: Expanding with 21 new properties by 2029.
👑 Business = Luxury + Monopoly Pricing + Experience Moat
4. Financials Overview
P&L Snapshot – FY25
| Metric | Value |
|---|---|
| Revenue | ₹2,743 Cr |
| Operating Profit | ₹1,028 Cr |
| Net Profit | ₹770 Cr |
| EPS | ₹11.82 |
| OPM % | 37% |
| 3-Yr Profit CAGR | 93% |
| ROE | 18% |
Steady room tariffs, high occupancy, and tourism boom = the perfect cocktail for profits.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹382 |
| P/E | 31.1x |
| P/B | 5.19x |
| ROE | 18% |
| Mcap | ₹23,870 Cr |
Fair Value Range: ₹360 – ₹480
Justified by 26–35x P/E given luxury positioning, asset ownership, and expansion tailwinds.
6. What’s Cooking – News, Triggers, Drama
- 21 new hotels planned by 2029 (India + global)
- Acquisition of EIH London Investments ✅
- New luxury resort in Rishikesh, Pune project worth ₹972 Cr
- Multiple tax/GST penalties across hotel units
- CFO resigned (Kallol Kundu) — new captain incoming
🛎️ Room service, but make it bullish.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹125 Cr |
| Reserves | ₹4,488 Cr |
| Borrowings | ₹265 Cr |
| Total Liabilities | ₹5,831 Cr |
| Fixed Assets | ₹3,143 Cr |
| Cash Equivalent | ₹825 Cr |
Balance Sheet Takeaways:
- Near zero leverage
- Large capex pipeline, yet no stress
- Real estate-backed. What’s not to like?
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹614 Cr | ₹-300 Cr | ₹-299 Cr | ₹16 Cr |
| FY24 | ₹712 Cr | ₹-546 Cr | ₹-167 Cr | ₹-1 Cr |
| FY25 | ₹825 Cr | ₹-424 Cr | ₹-113 Cr | ₹289 Cr |
💸 Solid cash from ops = internally funding expansion
💰 Capex continues, but not dependent on debt or dilution
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 16% | 24% | 23% |
| ROE | 14% | 18% | 18% |
| OPM | 30% | 37% | 37% |
| Working Cap Days | -23 | -30 | -21 |
| Cash Conversion | -416 | -294 | -290 |
📈 ROCE and OPM improving, efficient working capital — pure operator magic.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM % | PAT | EPS |
|---|---|---|---|---|
| FY22 | ₹985 Cr | -3% | ₹-95 Cr | ₹-1.56 |
| FY23 | ₹2,019 Cr | 30% | ₹329 Cr | ₹5.03 |
| FY24 | ₹2,511 Cr | 37% | ₹678 Cr | ₹10.22 |
| FY25 | ₹2,743 Cr | 37% | ₹770 Cr | ₹11.82 |
Post-COVID comeback is officially complete.
11. Peer Comparison
| Company | Sales (Cr) | ROE % | P/E | PAT (Cr) | OPM % | Div Yield |
|---|---|---|---|---|---|---|
| Indian Hotels | ₹8,825 | 16.1% | 64.0x | ₹1,716 | 32.8% | 0.29% |
| ITC Hotels | ₹3,560 | 5.0% | 82.5x | ₹634 | 34.0% | 0.00% |
| Lemon Tree | ₹1,286 | 18.4% | 62.8x | ₹197 | 49.3% | 0.00% |
| Chalet Hotels | ₹1,717 | 5.8% | 143.8x | ₹141 | 42.8% | 0.00% |
| EIH (Oberoi) | ₹2,743 | 18.0% | 31.1x | ₹770 | 37.0% | 0.39% |
🤺 Best balance of profitability, price, and pedigree.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2024 | Mar 2025 |
|---|---|---|
| Promoters | 32.85% | 32.85% |
| FIIs | 5.25% | 6.08% |
| DIIs | 13.77% | 13.64% |
| Public | 48.13% | 47.44% |
- FIIs creeping back
- Public holding large chunk = retail love is real
- Steady promoter confidence despite expansion burn
13. EduInvesting Verdict™
EIH is the Rolls Royce of Indian hospitality: not flashy, not cheap — but timeless, classy, and dependable. With 21 properties coming up and some seriously premium unit economics, the growth runway is long and unhurried.
🛏️ Is this stock sexy like Zomato? No.
🏨 Is this stock a compounder with vintage oakwood elegance? YES.
Verdict: Oberoi may not throw a party, but your portfolio just might.
Metadata
Written by Eduinvesting | 21 July 2025
Tags: Hotels, Hospitality, Oberoi, EIH, Luxury, Compounding, Stocks
