EIH Associated Hotels Ltd

EIH Associated Hotels Ltd maintains a strong liquidity position, with a current ratio of 3.92, indicating the company can easily cover its short-term liabilities with its short-term assets. The company's liquidity_fpt score further supports this, showing a low liquidity risk. The firm holds INR 345.14 million in cash and equivalents, which is a significant portion of its total assets, suggesting a conservative approach to liquidity management.

In terms of profitability, the company's return on equity (ROE) of 7.95% and return on assets (ROA) of 6.53% are both above the industry median for hotels and motels, indicating efficient use of equity and assets to generate profit. The operating margin of 34.5% (calculated from operating income of INR 457.56 million on revenue of INR 1.325 billion) is also robust, suggesting strong cost control and pricing power.

Geographically, the company's revenue is concentrated in India, with no disclosed international operations. The lack of geographic diversification may expose the company to regional economic fluctuations, but the domestic market remains a key growth driver. Segment-wise, the company's operations are primarily focused on hotel management and real estate, with no material diversification into other hospitality services.

Looking ahead, the company is projected to see a 12% increase in revenue in the current fiscal year, driven by occupancy rate improvements and new property openings. The next fiscal year is expected to see a 9% growth, assuming continued recovery in domestic travel and business activity. The capital expenditure of INR 373.61 million in the latest period reflects ongoing investments in property maintenance and expansion.

The company's risk profile is currently low, with no immediate liquidity or dilution flags detected. The debt-to-equity ratio of 0.01 indicates a very low leverage position, reducing financial risk. However, the company's reliance on domestic demand and the cyclical nature of the hospitality industry remain key risks. No dilution is expected in the near term, as the number of shares outstanding has remained unchanged.

Recent filings and transcripts show no material changes in the company's strategic direction or financial health. The company continues to focus on expanding its hotel portfolio and improving operational efficiency.

Revenue grew at a 41.7% CAGR over four years, demonstrating strong top-line expansion momentum.

Free cash flow surged 38.8% year-over-year, reaching 628.5 million INR in the latest period.

Debt-to-equity ratio of 0.01 is well below the 0.38 industry median, ensuring financial stability.

Long-term debt increased to 42.7 million INR in the latest period, reversing a prior decline.

Revenue INR 3.85B, +14,2% YoY; Operating income +22,6% YoY.

• ▍Revenue INR 3.85B, +14,2% YoY
• ▍Operating income +22,6% YoY
• ▍Net income +25,4% YoY
• ▍Free cash flow −26,3% YoY
• ▍Net margin 21.1%

Revenue INR 3.37B, +72,7% YoY; Operating income +375,9% YoY.

• ▍Revenue INR 3.37B, +72,7% YoY
• ▍Operating income +375,9% YoY
• ▍Net income +401,6% YoY
• ▍Free cash flow +374,1% YoY
• ▍Net margin 19.2%

Revenue INR 1.95B, +92,5% YoY; Operating income +142,9% YoY.

• ▍Revenue INR 1.95B, +92,5% YoY
• ▍Operating income +142,9% YoY
• ▍Net income +148,2% YoY
• ▍Free cash flow +140,2% YoY
• ▍Net margin 6.6%

Revenue INR 1.01B; Operating income -INR 385.3M.

• ▍Revenue INR 1.01B
• ▍Operating income -INR 385.3M
• ▍Net margin -26.4%