Buy EIH, target price Rs 125: ICICI Direct

ICICI Direct has buy call on EIH with a target price of Rs 125. The current market price of EIH is Rs 91.75.
EIH Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 5725.21 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 230.77 Crore, up 18.48 % from last quarter Total Income of Rs 194.78 Crore and down -46.48 % from last year same quarter Total Income of Rs 431.17 Crore. Company reported net profit after tax of Rs -39.92 Crore in latest quarter.

Investment Rationale
With a strong balance sheet and strategic property locations across key destinations, the company is best positioned to ride the long-term growth story. At the CMP of Rs 92, the stock trading at adjusted EV/room of Rs 1.8/room (i.e. at 51% of its fair value). Hence, the brokerage maintains BUY rating with an unchanged target price of Rs 125 (@ 23.5x FY23E EV/EBITDA)