EIH: Reduced Pandemic Impact, Cyclical Upswing, Strong Brand, Locational Advantage To Drive Growth, Says Nirmal Bang
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Nirmal Bang Report
The strong impact of Covid-19 outbreak led to a sharp decline in EIH Ltd.’s stock price by 63% from Rs 149 in January 2020 to Rs 55 in May 2020.
While the stock price has increased to Rs 97 now, in our view, it does not fully incorporate the strong growth in earnings post the pandemic.
On an overall sectoral basis, our optimism is driven by strong pricing power and better occupancies in branded hotels due to the expected closure of 10-20% of the branded room supply in the wake of the pandemic, as per hotel experts.
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