Scripscan:EIH Ltd
Cmp:85
Traded in:Bse-nse
Story:EIH owns and operates luxury hotels and resorts in India under the name ‘Oberoi’. The company also manages a mid-price hotel chain in India, in addition to hotels in Egypt, Australia, Sri Lanka, Indonesia and Saudi Arabia.The company recently said it would invest around Rs650 crore in its two properties in Bangalore and Goa.Based on an investment of Rs1.4 crore for each room,the total project cost for both the properties would be around Rs 650 crore.Bangalore will be a 400-room property on an eight-acre plot while Goa will have both hotel and villas on a 50-acre plot.In line with the strategy to expand its operation by management contracts, the company will be managing seven new upcoming hotels in both domestic and international locations.Now there are strong reports that the group is looking to divest the stake to some corporate houses and private equity firms.Reports indicated that the deal is expected to be signed at a substantial premium over EIH’s current market price.It is speculated that inking of the deal would happen at a price of over 200rs.Reliance Industries through various associate companies is one of the front-runners for the stake. EIH promoters hold 46.37% in the company(as at end June 2008).So one can have a position in the counter if she feels the same is about to vindicate soon.Even if teh deal doesnt happen EIH stock is a good investment option for a moderate risk portfolio and an investment horizon of at least one-two year horizion.Buy the stock for decent returns as some major developments are expected to happen within the same period.
Regards,
ARUN
I can be reached at:-arunanalyst@rediffmail.com
Monday, November 17, 2008
Subscribe to:
Post Comments (Atom)
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
No comments:
Post a Comment