H. S. India Receives 'Hold' Rating, Shows Positive Results

H. S. India, a microcap company in the hotel industry, has recently received a 'Hold' rating from MarketsMOJO on October 30, 2023. This upgrade comes after the company reported positive results in September 2023, with a high debtors turnover ratio of 9.25 times and the highest net sales and PBDIT at Rs 6.33 crore and Rs 1.26 crore respectively.
Technically, the stock is in a bullish range and has shown a significant improvement since November 2, 2023, generating a return of 37.6%. Multiple factors such as MACD, Bollinger Band, KST, and DOW also indicate a bullish trend for the stock.

Despite its attractive valuation with a ROCE of 5.7 and a 1 Enterprise value to Capital Employed, the stock is currently trading at a discount compared to its historical average. However, its profits have fallen by -50.5% in the past year, while the stock has generated a return of 59.39%.

The majority shareholders of H. S. India are non-institutional investors, and the company has consistently outperformed BSE 500 in the last three annual periods, with a return of 59.39%.

On the other hand, the company's long-term fundamental strength is weak, with a -6.54% CAGR growth in operating profits over the last five years. Its ability to service its debt is also poor, with a low EBIT to Interest (avg) ratio of 1.21. Additionally, the company's Return on Equity (avg) stands at 3.55%, indicating low profitability per unit of shareholders' funds.

Overall, while H. S. India has shown positive results and a bullish trend in the short term, its long-term fundamentals and profitability may be a cause for concern. Investors are advised to hold the stock and monitor its performance closely.