Graviss Hospitality: Strong Sell Signal Issued

Graviss Hospitality, a microcap company in the hotel industry, has recently received a downgraded stock call from 'Sell' to 'Strong Sell' by MarketsMOJO on November 15, 2023. This decision is based on the company's weak long-term fundamental strength, as it has been facing operating losses and poor growth in net sales over the past 5 years.

Furthermore, Graviss Hospitality's ability to service its debt is also a concern, with a poor EBIT to Interest ratio. In the recent quarter of September 2023, the company reported negative results, with a decrease of 65.5% in profits and the lowest net sales and PBDIT figures.

With a ROE of 2.3, the company's valuation is considered to be very expensive, with a price to book value of 1.8. However, it is currently trading at a fair value compared to its historical valuations. In the past year, the stock has generated a high return of 125.39%, but its profits have only increased by 239.3%. This leads to a low PEG ratio of 0.3.

Other factors to consider include a sideways technical trend, which indicates no clear price momentum, and the fact that majority shareholders are promoters. Despite the company's poor performance, it has still outperformed the market (BSE 500) with a return of 125.39% in the last year.

In conclusion, the recent downgrade of Graviss Hospitality's stock call to 'Strong Sell' is a cause for concern, as the company struggles with operating losses, weak growth, and a high valuation. It is important for investors to carefully evaluate all factors before making any decisions regarding this stock.