Howard Hotels Receives 'Hold' Rating from MarketsMOJO, Technical Indicators Show Bullish Trend

Howard Hotels, a microcap company in the hotel, resort, and restaurant industry, has recently received a 'Hold' rating from MarketsMOJO on October 28, 2024. This upgrade is based on various technical indicators that show the stock is currently in a bullish range. Since September 5, 2024, the stock has generated a return of 5.66%.
One of the reasons for the 'Hold' rating is the company's attractive valuation with a ROCE of 9 and an enterprise value to capital employed ratio of 2.1. Additionally, the stock is currently trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of 85.31% in the past year, its profits have fallen by -101.7%.

The majority shareholders of Howard Hotels are the promoters, which may provide some stability for the company. It has also consistently outperformed the BSE 500 index in the last 3 annual periods.

On the other hand, the company's long-term fundamental strength is weak due to operating losses and poor growth in net sales over the last 5 years. Its ability to service its debt is also a concern with a poor EBIT to interest ratio of -0.27.

In the most recent quarter, the company reported flat results with a PBDIT of -0.50 cr and a PBT less OI of -0.79 cr. The EPS for the quarter was also at its lowest at Rs -0.85.

Overall, while the technical indicators show a bullish trend for Howard Hotels, its weak long-term fundamental strength and poor financial performance in the most recent quarter suggest a 'Hold' rating for now. Investors should keep an eye on the company's future performance before making any investment decisions.