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EIH Q1 Margins Under Pressure, But Nirmal Bang Stays Bullish — Here's Why

Nirmal Bang stays positive on EIH's overall luxury category on account of structural demand-supply mismatch and FTA 'hope story'.

EIH Q1 Margins Under Pressure, But Nirmal Bang Stays Bullish — Here's Why
Nirmal Bang resumes coverage on EIH with a Buy rating.
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STOCKS IN THIS STORY
EIH Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

EIH Ltd.'s Q1FY27 performance showed healthy revenue and RevPAR growth, although profitability lagged expectations, prompting Nirmal Bang Institutional Equities to flag near-term margin pressure while retaining its bullish stance on the hotel operator.

ALSO READ: Grasim Q1 Beats Estimates As Birla Opus Losses Narrow; Motilal Oswal Stays Bullish — Check Target Price

The brokerage maintained a Buy rating on EIH with a target price of Rs 348, implying about 17% upside from the report's market price of Rs 298. Nirmal Bang said it remains positive on the luxury hospitality segment, supported by a structural demand-supply mismatch and expectations of improvement in foreign tourist arrivals.

Click on the attachment to read the full report:

Nirmal Bang Eih Q1.pdf
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