Graviss Hospitality Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance and Potential for Growth

Graviss Hospitality, a microcap company in the hotel industry, has recently received a 'Hold' rating from MarketsMOJO on April 18, 2024. This upgrade is based on several factors, including the company's high debtors turnover ratio of 217.84 times, PBDIT of Rs 5.68 crore, and operating profit to net sales ratio of 34.74%. These numbers indicate a strong financial performance for the company.
Technically, the stock is in a bullish range and has shown improvement since April 15, 2024, with a return of -1.09%. The stock has also shown multiple bullish signals, such as MACD, Bollinger Band, and KST. The majority shareholders of Graviss Hospitality are the promoters, which adds to the company's stability and potential for growth.

Over the past three years, Graviss Hospitality has consistently outperformed the BSE 500 index and has generated a return of 100.85% in the last year alone. However, the company's long-term fundamental strength is weak, with an average return on equity of 0.66% and a slow growth rate of 2.56% in net sales over the last five years. Additionally, the company's ability to service its debt is poor, with a low EBIT to interest ratio of -4.95.

Despite these weaknesses, the stock is currently trading at a discount compared to its historical valuations and has a PEG ratio of 0, indicating a potential undervaluation. With a return on equity of 2.3, the stock may seem expensive, but it has shown a significant increase in profits of 550% in the past year. Overall, Graviss Hospitality shows potential for growth and stability, making it a 'Hold' for investors.