EIH vs Indian Hotels Which Should You Buy?

EIH Limited and Indian Hotels Company Limited are two prominent players in the Indian hospitality industry. EIH, known for its iconic Oberoi brand, focuses on luxury hotels and resorts, while Indian Hotels, which operates under the Taj brand, caters to a wider range of customers. Both companies have a strong presence in the market and have seen fluctuations in their stock prices based on industry trends, economic conditions, and company performance. Investors looking to invest in the hospitality sector should closely monitor the stocks of these two companies.

EIH or Indian Hotels?

When comparing EIH and Indian Hotels, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between EIH and Indian Hotels.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. EIH has a dividend yield of 0.32%, while Indian Hotels has a dividend yield of 0.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EIH reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Indian Hotels reports a 5-year dividend growth of 20.11% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with EIH P/E ratio at 37.03 and Indian Hotels's P/E ratio at 80.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EIH P/B ratio is 5.69 while Indian Hotels's P/B ratio is 10.26.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EIH has seen a 5-year revenue growth of 0.27%, while Indian Hotels's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EIH's ROE at 16.59% and Indian Hotels's ROE at 13.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹359.20 for EIH and ₹726.05 for Indian Hotels. Over the past year, EIH's prices ranged from ₹222.45 to ₹502.20, with a yearly change of 125.76%. Indian Hotels's prices fluctuated between ₹406.20 and ₹748.40, with a yearly change of 84.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.