EIH Associated Hotels (CMP 691.50) owns and operates luxury five star hotels under brand names Oberoi and Trident. Its a JV between Oberoi (EIH Ltd) and Rajan Raheja Group. Today EIH Associated Hotels came out with Q3 numbers which were good. They usually make most of their profits in Q3 & Q4. As the wedding season and travel and tourism industry has gathered momentum, the same is reflected in the stock price of EIH Associated Hotels as today it has hit a All time high of 714 rs and is at an interesting level. The chart below has formed a rounding bottom and its previous high was back in mid April 2018. The stock has come out of a 6 year consolidation.
Similarly EIH Ltd (CMP 344.25) is also hitting All time high on a daily basis, on the back of strong earnings. Also better Q3 & Q4 performance is expected due to revival of hotel industry and all Q3 performances by peers were good. In case of EIH Ltd the stock cleared its previous peak of 240 which was created back in Jan 2008 and has come out of 16 year consolidation.
Sector usually trades at 60 PE X.
Disclosure : Invested in both stocks. (not a recommendation, anyone contemplating investing needs to do their own diligence).
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