EIH Ltd.

“EIH Limited operates India's finest luxury hotel brand with a near-irreplaceable combination of prime real estate, brand equity, and codified service excellence. The post-COVID earnings recovery is structural, ROIC is above cost of capital, and the balance sheet is conservatively managed with net cash. However, at 31x trailing P/E and a 1.7% FCF yield, the stock prices in continued double-digit growth with no margin of safety. The ITC stake overhang, limited large-scale reinvestment runway, and 32% promoter ownership create a structural governance discount that deserves a valuation haircut — one the market is currently not applying. Projected 10-year returns of 11-14% CAGR are solid but not exceptional enough to load up at current prices. This is a world-class business to own at the right price; that price is not today.”