1:1 Bonus Shares & Rs 6 Dividend: 13th August Record Date; Keep SL At Rs 860 For Target?

EIH Associated Hotels Limited is the flagship company of The Oberoi Group, one of the largest hospitality groups in India & Asia. Currently, the group owns and operates ten five-star properties under the Trident Hotels brand and twenty exceptional hotels under the opulent Oberoi Hotels & Resorts brand. The company changed the record date for the 1:1 bonus shares and Rs 6 per share dividend from Monday, July 29, 2024 to Tuesday, August 13, 2024. The stock's technical analysis and the details are discussed below.

EIH Associated Hotels Record Date For Bonus Shares & Dividend

"We are pleased to inform you that the Board of Directors of EIH Associated Hotels Limited, at its meeting held on Friday, 24th May 2024, has recommended a dividend of Rs. 6/- per equity share of face value Rs. 10/- each for the Financial Year ended 31st March 2024," said the company in a stock exchange filing.

The Board of Directors of EIH Associated Hotels in their meeting held on 14th June 2024 recommended 1:1 bonus shares comprising 3,04,68,147 equity shares having a face value of Rs. 10/-each as the total number of securities proposed to be issued or the total amount for which the securities will be issued as a part of bonus shares.

An amount of Rs. 30,46,81,470/- will be appropriated from securities premium for the issuance of bonus shares according to the company.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Board of Directors has revised the record date for determining the list of eligible shareholders to receive the Final Dividend for the Financial Year 2023-24 and bonus shares from Monday, 29th July 2024 to Tuesday, 13th August 2024. This disclosure may also be treated as corrigendum to the Notice of Annual General Meeting to the effect that where record date is appearing as Monday, 29th July 2024 be read as Tuesday, 13th August 2024," said the company in a regulatory filing.

EIH Associated Hotels Q1 Results

For the first quarter that ended on June 30, 2024, EIH Associated Hotels Ltd. stated on Monday that its profit after tax dropped by 50.6% to Rs. 3.58 crore. In the same quarter of the previous fiscal year, the company reported profit after tax (PAT) of Rs 7.25 crore, according to a regulatory filing from EIH Associated Hotels. It further stated that revenue from operations for the quarter under review was Rs 64.48 crore as opposed to Rs 66.86 crore for the same time last year. Compared to a year-ago period, when total expenses were Rs 60.54 crore, the expenses came to Rs 64.15 crore in Q1FY25.

EIH Associated Hotels Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "EIHAHOTELS is currently trading around 877 levels and is going through a consolidation phase. The stock has found support near 867 levels which is close to its medium-term (50-day) EMA levels. If the stock shows any signs of reversal from these levels, it could potentially rebound and move towards the upside resistance near 960-990 levels. The Relative Strength Index (RSI) stands at 41.94 levels, indicating that the stock is not in an overbought condition and thus has room for further upward movement."

'Additionally, EIHAHOTELS is trading near its medium-term (50-day) EMA levels, signalling strong support at these levels. Considering the current technical indicators and price action, EIHAHOTELS seems well-positioned for a potential upward move if any reversal is observed. Investors should consider buying on reversal above 900 levels and place a stop loss around 860 levels to manage risk," the analyst further added.

"EIH Associated Hotels Ltd's market performance and price movements continue to pique the interest of traders and investors. I recommend interested traders and buyers to consider entering at Rs. 885 for a target range of Rs. 910-1000. However, they must set their stop loss for this stock at Rs. 835 if they plan to hold it for a period of 1-5 days. This will help protect gains and limit losses, if any," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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