 "Oberoi hotel, restaurant, dining, eating")
EIH Ltd shares hit a fresh 52-week high of Rs 243.15 apiece, rising 2.4 per cent on the BSE in Friday's intraday trade, after its promoter company Oberoi Group entered into an understanding with Reliance Industries to manage three properties across India and the UK.
At 10:50 AM, shares of EIH were down 0.06 per cent at Rs 237.25 per share as against 0.65 per cent dip in the benchmark S&P BSE Sensex.
"Reliance Industries and The Oberoi Hotels and Resorts (Oberoi) will jointly manage three properties across India and the UK. These include the upcoming Anant Vilas Hotel in Mumbai’s Bandra Kurla Complex (BKC), the iconic Stoke Park in the UK, and another planned project in Gujarat," Reliance Industries said in a statement.
Oberoi has an unparalleled track record of providing outstanding customer service in the hospitality industry globally. Oberoi has in their portfolio several palaces and other historic properties that have been enhanced while preserving the character and vision of the historic properties, RIL added.
All the entities under the Oberoi Group's umbrella collectively own 32.8 per cent stake in EIH Ltd. Among individual promoters, Arjun Singh Oberoi, Vikramjit Singh Oberoi, and PRS Oberoi, together, hold 30.75 per cent stake in the company.
Analysts at ICICI Securities remain positive on the stock as the hospitality sector has seen a sharp rebound after a Covid-19-led lull. The brokerage suggests investors buy the stock in the range of Rs 227-235 for a target of Rs 265, and a stoploss of Rs 215.
"Structurally, since April 2923, the stock has been trading above its 50-day exponential moving average (EMA) and has been forming higher base above multi-year highs placed around Rs 200 levels, indicating elevated buying demand and inherent strength," it had said in a recent report where EIH was its top pick.
Meanwhile, a meeting of the Board of Directors of EIH Ltd will be held on Friday, September 1, 2023, for discussion and approval of the company's strategies for its future plans and operations.
From its 52-week low of Rs 150.45 per share on an intraday basis, touched on March 28, the stock has soared 62 per cent at the bourses. By comparison, the benchmark Sensex index has advanced 13 per cent during the period.
Q1-FY24 results
On August 8, EIH Ltd reported a 65.3 per cent year-on-year (YoY) jump in net profit at Rs 103.8 crore for the April-June quarter (Q1-FY24). Total revenue, meanwhile, stood at Rs 498 crore, increased 26.3 per cent YoY from Rs 394.3 crore.
Ebitda improved 56 per cent to Rs 155.4 crore during the period under study, while Ebitda margin expanded to 31.2 per cent.
